view. We analyzethemarket for a homogeneous good where some consumers are fully informedwhile others are not. Depending on … these equilibria. For example, a reduction insearch cost may raise equilibrium prices when consumers' searchintensity is low …, but reduce prices when consumers search intensityis high. These different comparative statics results may explain themixed …

In this paper we investigate whether sellers treat consumers differently on the basis of how well-informed consumers …. We show that sellers alter their initial price quotes depending on whether consumers appear to be well …

about whether a low-cost service is sufficient or whether a high-cost treatment is required to solve the consumerś problem … objective outcome but only the consumerś report, or subjective evaluation. A failure of the low-cost treatment delays the … solution of the consumerś problem by the high-cost treatment to a second period. We show that the first-best solution can …