Ordered Search in Differentiated Markets
This paper presents an ordered search model in which consumers search both for price and product fitness. We show that there is price dispersion in equilibrium and prices rise in the order of search. The top firms in consumer search order, though charge lower prices, earn higher profits due to their larger market shares.
L13 - Oligopoly and Other Imperfect Markets, D83 - Search; Learning; Information and Knowledge; Communication; Belief, D43 - Oligopoly and Other Forms of Market Imperfection
DOI identifier: 10.1016/j.ijindorg.2010.07.001