Informative Price Advertising in a Sequential Search Model

Econometrica ◽  
1993 ◽  
Vol 61 (3) ◽  
pp. 657 ◽  
Author(s):  
Jacques Robert ◽  
Dale O. Stahl II
Keyword(s):  
Search Model ◽  
Sequential Search ◽  
Price Advertising

scholarly journals Informational Cycles in Search Markets

2020 ◽  
Vol 12 (4) ◽  
pp. 170-192
Author(s):  
Eeva Mauring
Keyword(s):  
Steady State ◽  
Informational Content ◽  
Search Model ◽  
Sequential Search ◽  
Market Participants ◽  
Transaction Prices ◽  
Unknown Distribution ◽  
Trading Volumes

I show that market participants’ equilibrium beliefs can create fluctuations in the volume of trading, even in a stationary environment. I study a sequential search model where buyers face an unknown distribution of offers. Each buyer learns about the distribution by observing whether a randomly chosen buyer traded yesterday. A cyclical equilibrium exists where the informational content of observing a trade fluctuates, which leads to fluctuations in the volume of trading. The cyclical equilibrium is more efficient than steady-state equilibria. The efficiency result holds also if buyers get a signal about past transaction prices or past trading volumes. (JEL D82, D83)

scholarly journals Multiproduct Search and the Joint Search Effect

2014 ◽  
Vol 104 (9) ◽  
pp. 2918-2939 ◽  
Author(s):  
Jidong Zhou
Keyword(s):  
Search Costs ◽  
Multiproduct Firms ◽  
Search Model ◽  
Sequential Search ◽  
Market Prices ◽  
Pricing Decisions

This paper presents a sequential search model where consumers look for several products from multiproduct firms. Multiproduct search can significantly influence firms' pricing decisions. For example, it can make market prices decrease with search costs. Possible applications of the model are also discussed. (JEL D11, D43, D83)

Sale of a Deteriorating Asset via Sequential Search

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Steven A. Lippman ◽  
John W Mamer
Keyword(s):  
Finite Time ◽  
Time Horizon ◽  
Reservation Price ◽  
Search Model ◽  
Sequential Search ◽  
Mild Conditions ◽  
Finite Time Horizon ◽  
Posted Price

We consider the sale of an asset via sequential search over a finite time horizon and analyze the problem in both the posted price and the reservation price regimes. The distinguishing feature of this search model is the fact that the asset deteriorates with the passage of time. Under mild conditions, we show that the seller's optimal posted price (and the seller's optimal reservation price) per remaining unit of the asset decreases as time passes.

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