Search models are used in a variety of fields. One of those is consumer search and in it the Stahl model is one of the most popular search models. The literature in search models concentrates mainly on equilibria with a consumer reserve price. This is a simplifying condition, which narrows down...

This paper investigates the effects of a low bound price. To do so, a popular and empirically proven model (Stahl (89') [11]) is used. The model is extended to include an exogenously given bound on prices sellers can offer, excluding prices below such bound. The finding are rather surprising -...