A theory of search with deadlines and uncertain recall

Autor:	S. Nuray Akin, Brennan C. Platt
Rok vydání:	2013
Předmět:	Microeconomics Economics and Econometrics Recall Ask price Economics TheoryofComputation_GENERAL Price formation Conventional wisdom Expected utility hypothesis Profit (economics) Public finance
Zdroj:	Economic Theory. 55:101-133
ISSN:	1432-0479 0938-2259
Popis:	We ask how the ability to recall past prices affects the dynamics of search and price formation. In the model, buyers have limited time to purchase a good and face uncertainty regarding the availability of past price quotes in the future. Sellers cannot observe a potential buyer’s remaining time until deadline nor her quote history, and hence post prices that weigh the probability of sale versus the profit once sold. We find that, in contrast to conventional wisdom, reducing the consumer’s recall ability may actually improve his expected utility because it lowers the average expected price in the market and reduces the duration of search.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::fa187c2771c262284028d1d5500be068 https://doi.org/10.1007/s00199-013-0740-8 Zobrazit plný text záznamu Full text from SpringerLink