蝌蚪网 Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Search Costs and Context Effects
蝌蚪网 Journal: Microeconomics
vol. 17,
no. 2, May 2025
(pp. 127–61)
Abstract
Empirical search cost estimates are often large and increasing in the size of the transaction. We conduct an online search experiment in which we manipulate the price scale while keeping the physical search effort per price quote constant. Additionally, we obtain a direct measure of subjects' opportunity costs of time. Using a standard search model, we confirm that search cost estimates are large and increasing in the price scale. We then modify the model to incorporate context effects with respect to prices. This results in search cost estimates that are scale independent and correspond well to subjects' opportunity costs of time.Citation
Karle, Heiko, Florian Kerzenmacher, Heiner Schumacher, and Frank Verboven. 2025. "Search Costs and Context Effects." 蝌蚪网 Journal: Microeconomics 17 (2): 127–61. DOI: 10.1257/mic.20240115Additional Materials
JEL Classification
- C91 Design of Experiments: Laboratory, Individual
- D12 Consumer Economics: Empirical Analysis
- D81 Criteria for Decision-Making under Risk and Uncertainty
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making