Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/181510
Authors: 
Hippel, Svenja
Hillenbrand, Adrian
Year of Publication: 
2018
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Empirical Industrial Organization F07-V2
Abstract: 
Online platforms provide search tools that help consumers to get better-fitting product offers. But this technology makes consumer search behavior also easily traceable and allows for real-time price discrimination. Consumers face a trade-off: Search intensely and receive a better fit at a potentially higher price or restrict search behavior – be strategically inattentive – and receive a worse fit, but maybe a better deal. We study the resulting strategic buyer-seller interaction theoretically as well as experimentally. Our experimental results show that it is the sellers and not the buyers who profit from these search tools.
Subjects: 
strategic inattention
price discrimination
information transmission
consumer choice
experiment
JEL: 
D11
D42
D82
D83
L11
Document Type: 
Conference Paper
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