CORDIS Project
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This study explores how consumer behavior is influenced by limited product search and seller recommendations in online markets. By developing a demand model, the research aims to assess the impact of selective information on consumer welfare and market dynamics.
We propose to study the working of markets when consumers do not want to search all available choice options and when sellers recommend products based on what ""similar consumers"" have bought in the past.
We argue that the current practice of on-line selling offers significant potential for selection mechanisms or limitations of what the consumer is aware of, prior to purchase.
To study this issue, we propose and estimate a demand model that includes a formal model of consumer information searc…
TILBURG UNIVERSITY- UNIVERSITEIT VAN TILBURG
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