no code implementations • 9 Jun 2022 • Atabek Atayev
The existing studies on consumer search agree that consumers are worse-off when they do not observe sellers' production marginal cost than when they do.
no code implementations • 30 Sep 2021 • Atabek Atayev, Maarten Janssen
Consumers can acquire information through their own search efforts or through their social network.
no code implementations • 30 Sep 2021 • Atabek Atayev
In many markets buyers are poorly informed about which firms sell the product (product availability) and prices, and therefore have to spend time to obtain this information.
no code implementations • 30 Sep 2021 • Atabek Atayev
The equilibrium production is socially efficient as the linear price of equilibrium two-part tariffs equals to the production marginal cost.
no code implementations • 30 Sep 2021 • Atabek Atayev
In markets with search frictions, consumers can acquire information about goods either through costly search or from friends via word-of-mouth (WOM) communication.
