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Dogan, Mustafa 
ORCID: https://orcid.org/0000-0001-9313-8911 and Hu, Ju
(2022)
Consumer Search and Optimal Information.
The RAND Journal of Economics, 53 (2).
pp. 386-403.
ISSN 0741-6261
Abstract
This article studies an information design problem in a sequential consumer search environment. Consumers, whose valuation of firms' products is uncertain, observe a noisy signal about the valuation upon being matched with a firm. The goal is to characterize those signal structures that maximize consumer surplus. We show that the consumer-optimal signal structure can be found within the class of conditional unit-elastic demand signal distributions. A rich set of properties and comparative statics of the consumer-optimal signal distributions are also derived.
| Item Type: | Article |
|---|---|
| Faculty \ School: | Faculty of Social Sciences > School of Economics |
| UEA Research Groups: | Faculty of Social Sciences > Research Groups > Economic Theory |
| Depositing User: | LivePure Connector |
| Date Deposited: | 29 Oct 2024 09:30 |
| Last Modified: | 03 Nov 2024 07:30 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/97239 |
| DOI: | 10.1111/1756-2171.12411 |
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