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This note presents an ordered search model in which consumers search both for price and product fitness. We construct an equilibrium in which there is price dispersion and prices rise in the order of search. The top firms in consumer search process, though charge lower prices, earn higher...
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a wide variety of differentiated offerings for consumers. However, consumers typically purchase only a limited scope of … the available variety, leading to a very high incidence of corner solutions which poses computational challenges for …
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creates satiation that diminishes the marginal utility of consuming more. Temporal satiation induces consumers to increase … their stimulation level by seeking variety and therefore substitute towards other goods (substitutability across time) or … other differentiated versions (products) of the good (substitutability across products). The literature on variety …
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We propose a tractable method for estimation of a simultaneous search model for differentiated products that allows for observed and unobserved heterogeneity in both preferences and search costs. We show that for type I extreme value distributed search costs, expressions for search and purchase...
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