Search and Collusion in Electronic Markets

  title={Search and Collusion in Electronic Markets},
  author={Colin Campbell and Gautam Ray and Waleed A. Muhanna},
  journal={Management Science},
W examine the impact of reduced search costs on prices of commodity products in electronic marketplaces. Conventionally, reduced consumer search costs may be expected to engender stronger price competition between firms, resulting in lower prices and improved consumer welfare. This notion was formalized in Stahl (1989, “Oligopolistic pricing with sequential consumer search,” American Economic Review, Vol. 79, No. 4, pp. 700–712) in a model of static firm competition. In this paper, we show that… CONTINUE READING

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