|   | 
Details
   web
Record
Author Carrasco, J.A..; Yanez, R.
Title Sequential search and firm prominence Type
Year 2022 Publication Economic Theory Abbreviated Journal Econ. Theory
Volume 74 Issue 1 Pages 209-233
Keywords EQUILIBRIUM PRICE DISPERSION; CONSUMER SEARCH; INFORMATION; ECONOMICS; MODEL
Abstract We explore the role of prominence in equilibrium pricing in markets where search is sequential and random. Our model key feature is that more prominent firms are more likely to be sampled first. In contrast to ordered-search models, we find that more prominent firms inherit larger but less elastic demands, and as such have incentives to post larger prices. However, they might post lower prices but still charge higher markups than less prominent competitors only if they are also sufficiently more efficient. Our results suggest that when search is sequential, the role of prominence depends on whether it modifies the order or just the chances with which firms are sampled.
Address
Corporate Author Thesis
Publisher Place of Publication Editor
Language Summary Language Original Title
Series Editor Series Title Abbreviated Series Title
Series Volume Series Issue Edition
ISSN 0938-2259 ISBN Medium
Area Expedition Conference
Notes WOS:000647491800002 Approved
Call Number UAI @ alexi.delcanto @ Serial 1373
Permanent link to this record