This paper analyses the role of information in the search process. Ibuild a simple model of a good with two random attributes with somejoint probability distribution. I consider seemingly unimportant changesin this distribution, i.e. changes which neither affect expected utility norits variance....

Der Konsument von Lebensmitteln ist, so scheint es oft, ein verunsicherter Verbraucher, dem über eine verstärkte und verbesserte Information geholfen werden muss. Der Arbeitsbericht leistet einen Beitrag zur Beantwortung der Frage: Welcher Bedarf besteht tatsächlich aus Verbrauchersicht an...

We study the optimal pricing problem of a firm facing customers with limited attention and capability to process information about the value (quality) of the offered products. We model customer choice based on the theory of rational inattention in the economics literature, which enables us to...

Consumers often do not have complete information about the choices they face and therefore have to spend time and effort in acquiring information. Since information acquisition is costly, consumers have to trade-off the value of better information against its cost, and make their final choices...