We examine the optimal acquisition of information about a common uncertain cost factor by two competing firms seeking to price a new product. We show that existing findings regarding the acquisition of demand information or the acquisition of either cost or demand information related to quantity...

This paper analyzes the competitive role of retail shopping experience in markets with consumer search costs. We examine how a retailer's advantage in providing consumer shopping experience affects its equilibrium pricing and price advertising strategies. We find that if the consumer valuation...

Internet Shopping Agents (ISAs) allow consumers to costlessly search many online retailers and buy at the lowest price. One would expect these ISAs to subject sellers to intense price competition that results in uniform low prices. Yet, Internet retailers have joined these ISAs. Furthermore, the...