In markets with search frictions, consumers can acquire information about goods either through costly search or from friends via word-of-mouth (WOM) communication. How do sellers’ market power react to a very large increase in the number of consumers’ friends with whom they engage in WOM?...

Consumers can acquire information through their own search efforts or through their social network. Information diffusion via word-of-mouth communication leads to some consumers free-riding on their “friends” and less information acquisition via active search. Free-riding also has an...

Product choice when consumers engage in social learning has significant implications on learning outcomes and on the information accumulation rate. In many practical settings, consumers can choose which product to buy, if any, among several possible alternatives. The quality of these products...