In the ultra-high temperature (UHT) milk category, parent brands introduce line extensions as innovative product designs to address the competitiveness in the market. However, not knowing if consumers will purchase the product results in uncertainty for the product design and marketing team....

This paper develops a dynamic model of consumer search that, despite placing very little structure on the dynamic problem faced by consumers, allows us to exploit intertemporal variation in price distributions to estimate the distribution from which consumer search costs are initially drawn. We...

We show how information acquisition costs can be identified using observable choice data. Identifying information costs from behavior is especially relevant when these costs depend on factors-such as time, effort, and cognitive resources-that are difficult to observe directly, as in models of...