Objetivo "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 search. This model accounts for limited product search and information effects on choice. Our proposed demand model can be estimated from a combination of browsing histories and ordinal demand data. Because these data are available for a wide cross-section of durable goods, the method we develop will likely have broader application than the strict confines of the current empirical context. The goal of developing this demand model is (i) to measure the severity of selectivity in self-motivated or seller-directed information search and (ii) to subsequently evaluate the consequences of selection for consumer welfare, and for market structure (e.g. concentration and firm competition). For instance, most product recommendation systems used in on-line selling create a feedback, between past sales and current sales, because popular products get recommended more often than unpopular ones. This polarizes product popularity beyond what it already was. Clearly such effects hold relevance when evaluating competition and entry, because in a feedback market where the big get bigger and the small get smaller, firms potentially offering new and innovative products find it difficult to enter. In sum, our study consists of (i) the development of demand models under imperfect product search, and (ii) the evaluation of the effects on consumer welfare and market structure of selective product search. We expect these aspects to be relevant in the study of (pan)-European markets." Ámbito científico humanitieshistory and archaeologyhistory Palabras clave Management of enterprises Marketing Microeconomics Quantative Methods Programa(s) FP7-PEOPLE - Specific programme "People" implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007 to 2013) Tema(s) PEOPLE-2007-4-3.IRG - Marie Curie Action: "International Reintegration Grants" Convocatoria de propuestas FP7-PEOPLE-IRG-2008 Consulte otros proyectos de esta convocatoria Régimen de financiación MC-IRG - International Re-integration Grants (IRG) Coordinador TILBURG UNIVERSITY- UNIVERSITEIT VAN TILBURG Aportación de la UE € 100 000,00 Dirección WARANDELAAN 2 5037 AB Tilburg Países Bajos Ver en el mapa Región Zuid-Nederland Noord-Brabant Midden-Noord-Brabant Tipo de actividad Higher or Secondary Education Establishments Contacto administrativo Marjoleine De Wit (Mrs.) Enlaces Contactar con la organización Opens in new window Sitio web Opens in new window Coste total Sin datos