Online markets have dramatically decreased costs of search and communication for buyers. By contrast, costs of evaluating purchasing alternatives have become critical due to an overwhelming range of available options. When high, evaluation costs can offset potential gains from transactions and...

Price comparison websites, where consumers can compare prices at a search cost that is close to zero, have become increasingly common around the world. Using daily information on prices, click-throughs, and the number of retailers for a sample of consumer electronics and durable goods over a...

This article examines how the consumer's search cost and filtering on a retail platform affect the platform, the third-party sellers, and the consumers. We show that, given the platform's percentage referral fee, a lower search cost can either increase or lower the platform's profit. By...