scholarly journals If Many Seek, Ye Shall Find: Search Externalities and New Goods

2017 ◽  
Vol 9 (4) ◽  
pp. 42-73
Author(s):  
Maciej H. Kotowski ◽  
Richard J. Zeckhauser
Keyword(s):  
Consumer Search ◽  
Equilibrium Search ◽  
Coordination Problems ◽  
New Goods ◽  
Search Externalities

Consumer search serves productive roles in an economy with multiple goods. In equilibrium, search promotes the sorting of consumers among producers, thereby enabling the market for new goods, and potentially increasing welfare and profits above the benchmark case (an economy with a single good, hence, no search). When competitors are few, additional direct competitors may benefit a firm, as more sellers may encourage more consumers to search. In return, consumer search entices producers of new goods to enter. Neither of these externalities, nor the coordination problems faced by consumers and producers, is appropriately recognized in the literature. (JEL D11, D43, D62, D82, D83, G22)

scholarly journals Discounts and Deadlines in Consumer Search

2020 ◽  
Vol 110 (12) ◽  
pp. 3748-3785
Author(s):  
Dominic Coey ◽  
Bradley J. Larsen ◽  
Brennan C. Platt
Keyword(s):  
Consumer Search ◽  
Search Model ◽  
Search Frictions ◽  
Online Retail ◽  
Equilibrium Search ◽  
Dynamic Search ◽  
Posted Prices ◽  
Reservation Prices ◽  
Robust Evidence ◽  
Equilibrium Search Model

We present a new equilibrium search model where consumers initially search among discount opportunities, but are willing to pay more as a deadline approaches, eventually turning to full-price sellers. The model predicts equilibrium price dispersion and rationalizes discount and full-price sellers coexisting without relying on ex ante heterogeneity. We apply the model to online retail sales via auctions and posted prices, where failed attempts to purchase reveal consumers' reservation prices. We find robust evidence supporting the theory. We quantify dynamic search frictions arising from deadlines and show how, with deadline-constrained buyers, seemingly neutral platform fee increases can cause large market shifts. (JEL D11, D44, D83, L81)

Coordination, conflict, and externalization

2018 ◽  
Vol 41 ◽  
Author(s):  
Justin P. Bruner
Keyword(s):  
Coordination Problems

AbstractI argue that the set of moralized norms and beliefs is more expansive than Stanford appears to suggest. In particular, I contend that norms governing behavior in conflictual coordination problems are likely to be moralized.

PERILAKU PEDAGANG MUSLIM DALAM TINJAUAN ETIKA BISNIS ISLAM (KASUS DI PASAR LOAK JAGALAN KEDIRI)

2019 ◽  
Vol 2 (1) ◽  
Author(s):  
Alwi Musa Muzaiyin
Keyword(s):  
Business Ethics ◽  
Key Words ◽  
Luxury Goods ◽  
The World ◽  
Goods Market ◽  
Islamic Business Ethics ◽  
New Goods ◽  
The Many ◽  
Used Goods ◽  
The City

Trade is a form of business that is run by many people around the world, ranging from trading various kinds of daily necessities or primary needs, to selling the need for luxury goods for human satisfaction. For that, to overcome the many needs of life, they try to outsmart them buy products that are useful, economical and efficient. One of the markets they aim at is the second-hand market or the so-called trashy market. As for a trader at a trashy market, they aim to sell in the used goods market with a variety of reasons. These reasons include; first, because it is indeed to fulfill their needs. Second, the capital needed to trade at trashy markets is much smaller than opening a business where the products come from new goods. Third, used goods are easily available and easily sold to buyer. Here the researcher will discuss the behavior of Muslim traders in a review of Islamic business ethics (the case in the Jagalan Kediri Trashy Market). Kediri Jagalan Trashy Market is central to the sale of used goods in the city of Kediri. Where every day there are more than 300 used merchants who trade in the market. The focus of this research is how the behavior of Muslim traders in the Jagalan Kediri Trashy Market in general. Then, from the large number of traders, of course not all traders have behavior in accordance with Islamic business ethics, as well as traders who are in accordance with the rules of Islamic business ethics. This study aims to determine how the behavior of Muslim traders in the Jagalan Kediri Trashy Market in buying and selling transactions and to find out how the behavior of Muslim traders in the Jagalan Kediri Trashy Market in reviewing Islamic business ethics. Key Words: Trade, loak market, Islamic business

Sign in / Sign up

Export Citation Format

Share Document