Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86739
Authors: 
Parakhonyak, Alexei
Year of Publication: 
2009
Series/Report no.: 
Tinbergen Institute Discussion Paper 09-087/1
Abstract: 
This paper analyses the role of information in the search process. Ibuild a simple model of a good with two random attributes with somejoint probability distribution. I consider seemingly unimportant changesin this distribution, i.e. changes which neither affect expected utility norits variance. These changes have a great impact on the search behaviour:the customer may start to search the characteristics and buy the goodeven if she did not do so before. The optimal search rule is derived andthe model is generalized to multiple objects.
Subjects: 
Search
Consumer Search
Value of Information
JEL: 
D01
D80
Document Type: 
Working Paper

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