Work

Testing Models of Consumer Search Using Data on Web Browsing and Purchasing Behavior

Year: 2012

Type: article

Abstract: Using a large dataset on web browsing and purchasing behavior we test to what extent consumers are searching in accordance to various search models. We find that the benchmark model of sequential search with a known price distribution can be rejected based on recall patterns found in the data as well as the absence of dependence of search decisions on prices. Our findings suggest fixed sample size search provides a more accurate description of search behavior. We then utilize the fixed sample size search model to estimate demand elasticities of online bookstores in an environment where store preferences are heterogeneous. (JEL D12, D83, L81)

Source: American Economic Review

DOI: 10.1257/aer.102.6.2955

Authors: Babur De los Santos, Ali Hortaçsu, Matthijs R Wildenbeest

Institutions: Indiana University Bloomington, Indiana University, University of Chicago

Language: English

Topic: Consumer Market Behavior and Pricing

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2095699306

FWCI: 73.08

Cites: 45

Cited by: 439

Related to: 10