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HAL INRAE
Article . 2024
Data sources: HAL INRAE
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Journal of Political Economy
Article . 2024 . Peer-reviewed
Data sources: Crossref
Journal of Political Economy
Article . 2024 . Peer-reviewed
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Consumer Search, Steering, and Choice Overload

Authors: Nocke, Volker; Rey, Patrick;

Consumer Search, Steering, and Choice Overload

Abstract

We develop a model of within-firm sequential, directed search and study a firm’s ability and incentive to steer consumers. We find that the firm often ben- efits from adopting a noisy positioning strategy, which limits the information available to consumers. This induces consumers to keep searching but discour- ages some of them from visiting the firm. This occurs even though the firm and the consumers have in common the interest of maximizing the probability of trade. Because of such noisy positioning, an increase in the size of the product line further discourages consumers from visiting the firm—consistent with choice overload.

Country
France
Keywords

Choice overload, 330, Platform, Multiproduct firm, Directed search, Steering, Consumer search, Sequential search, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Product Variety, B- ECONOMIE ET FINANCE

  • BIP!
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    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    4
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
4
Top 10%
Average
Average
Green
Related to Research communities
INRAE