Firms simultaneously set prices in a homogeneous-product market where uninformed consumers search for price information …. Some uninformed consumers are local searchers who visit only one seller, possibly due to high search costs or bounded … rationality; whereas others search sequentially with an optimal reservation price. Equilibrium prices may follow a mixture …

In this paper we use search theory to model the decision making process of boundedly rational agents. In the canonical … (sequential) search approach, each decision maker is deemed to acquire new information, at random intervals of time, regarding the … stopping rule in which the search process terminates as soon as information is revealed that indicates that the agent's payoff …

This paper develops a dynamic model of consumer search that, despite placing very little structure on the dynamic … problem faced by consumers, allows us to exploit intertemporal variation in within-period price and search cost distributions … to estimate the population distribution from which consumers' search costs are initially drawn. We show that static …

of efficiency gains, namely lower search costs, better matching, and more intense product market price-competition.  A … monopolistic search engine charges advertisers too high a price, and has incentives to provide a suboptimal matching quality …Search engines enable advertisers to target consumers based on the query they have entered.  In a framework with …

presence of savvy consumers improves the deals available to non-savvy consumers in the market (the case of search externalities …