Konishi, Hideo; Arbatskaya, Maria - Department of Economics, Boston College - 2005
This paper compares the equilibrium outcomes in search markets with and without referrals. Although it seems clear that … horizontally differentiated product market with sequential consumer search, we show that valuable referrals can arise in the … of referrals when search costs are not too low, and under a certain parameter range, referrals lead to a Pareto …