. Finally, a behavioral assumption on how consumers search provides a micro-foundation for consideration probabilities widely …

that consumers obtain the first price quotation for free. When all price quotations are costly to obtain, a new equilibrium … arises where consumers randomize between not searching at all and searching for one price. The region of parameters for which …

Economic Review 79, 700–12] by relaxing the assumption that consumers obtain the first price quotation for free. When all price …

heterogeneity. In doing so, we dispense with the usual assumption that all consumers search at least once in equilibrium. This … important but often neglected aspect of the price mechanism. Recognizing the role the equilibrium price plays in consumers … participation - may be affected in opposing directions by a change in search costs. When search costs go up, fewer consumers decide …

heterogeneity. In doing so, we dispense with the usual assumption that all consumers search at least once in equilibrium. This … important but often neglected aspect of the price mechanism. Recognizing the role the equilibrium price plays in consumers …