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SSRN Electronic Journal
Article . 2024 . Peer-reviewed
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https://doi.org/10.2139/ssrn.5...
Article . 2025 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2024 . Peer-reviewed
Data sources: Crossref
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Research . 2024
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Search on a Grid: Directed Consumer Search With Correlated Products

Authors: Gambato, Jacopo;

Search on a Grid: Directed Consumer Search With Correlated Products

Abstract

The consumer search literature mostly considers independently distributed products. In contrast, I study a model of directed search with infinitely many products whose valuations are correlated through shared attributes. I propose a tractable, systematic, history-dependent scoring system based on nests of correlated products that leverages the predictability of the optimal search process along different paths. This scoring system generates an optimal search policy conceptually equivalent to the familiar optimal policy with independently distributed search products. The policy instructs the consumer to inspect unrelated products until an attribute the realization of which surpasses the added informational value of inspecting two new attributes is found. The search paths emerging from this policy match recent evidence of consumer learning through search, and can rationalize backtracking to a previously abandoned attribute.

Country
Germany
Related Organizations
Keywords

D83, learning, 330, ddc:330, consumer search, directed search

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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!
0
Average
Average
Average
Green