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Baye Morgan Scholten (2006) - Information Search and Price Dispersion (view source)
Revision as of 03:58, 26 January 2010
, 03:58, 26 January 2010→Sequential Search Models
'''Case 1)''' <math>h(\overline{p}) < 0 \,\,</math> and <math> \int_{\underline{p}}^{\overline{p}} v(p)dF(p) < c\,</math>. In this case it is better not to search.
'''Case 2)''' <math>h(\overline{p}) < 0 \,</math> and <math>\int_{\underline{p}}^{\overline{p}} v(p)dF(p) \ge c\,</math>. In this case the net benefit at the current price is negative, but the consumer is best off by searching until they get a price quote at (or below) <math>\underline{p}\,</math>.