Search Disclosure

We study information sharing between competing sellers in markets where consumers sample sellers sequentially. Sellers can disclose to their rival when they encounter a specific buyer. Providing this information, which we call search disclosure, can enable all forms of search history-based price discrimination. Yet, firms only conduct search disclosure in equilibrium if search costs are low or price revisions are infeasible. The type of search disclosure that can emerge in equilibrium leads to price discrimination that reduces welfare and consumer surplus. However, exogenously mandated search disclosure at all times leads to higher consumer surplus. Our findings have implications for the regulation of tracking in online markets