Targeted search and the long tail effect
type="main"> <p>We develop a search model to explain the long tail effect. Search targetability, or the quality of search, is explicitly modelled. Consumers are searching for the right products within the right categories. As search costs decrease, or search targetability increases, additional variety of goods catering to long tail consumers will be provided, and the concentration of sales across different categories of goods decreases. The effects of a decrease in search costs or an increase in search targetability on consumer utility, prices, and profits depend on whether the type coverage increases. Decreases in search costs and increases in search targetability have different qualitative effects.
Year of publication: |
2013
|
---|---|
Authors: | Yang, Huanxing |
Published in: |
RAND Journal of Economics. - RAND, ISSN 0741-6261. - Vol. 44.2013, 4, p. 733-756
|
Publisher: |
RAND |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Competitive Nonlinear Taxation and Constitutional Choice
Morelli, Massimo, (2012)
-
Cheap talk with two senders and complementary information
McGee, Andrew, (2013)
-
INVESTMENT CYCLES, STRATEGIC DELAY, AND SELFâREVERSING CASCADES*
Peck, James, (2011)
- More ...