Parakhonyak, Alexei N.; Sobolev, Anton - National Research University Higher School of Economics - 2014
In this paper we analyse a model of oligopolistic competition in which consumers search without priors. Consumers do … not have prior beliefs about the distribution of prices charged by rms and thus try to use a robust search procedure: they … consumers stop searching with a probability strictly between zero and one. We show that for any distribution of search costs …