Repeated Price Search

Repeated Price Search

Consumers check few sites in online purchases. Previous research and experiments we perform demonstrate that consumers can not calculate the optimal strategy for price search. They use heuristics whose performance is better than random and less than optimal. To investigate online price search perfor...

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Bibliographic Details
Published in:Computational economics Vol. 39; no. 3; pp. 243 - 257
Main Authors: Norman, A., Berman, J., Brehm, K., Drake, M., Dyer, A., Frisby, J., Govil, C., Hinchey, C., Heuer, L., Ke, J., Kejriwal, S., Kuang, K., Keyburn, S., Ler, S., Powers, K., Robertson, A., Sanghai, J., Schulze, C., Schieck, J., Sussman, J., Tan, L., Tello, A., Wang, R., Yan, K., Zeinullayev, T.
Format: Journal Article
Language:English
Published: Boston Springer US 01-03-2012
Society for Computational Economics
Springer Nature B.V
Series:Computational Economics
Subjects:
Algorithms
Behavioral/Experimental Economics
Computational methods
Computer Appl. in Social and Behavioral Sciences
Consumer behaviour
Consumers
Costs
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Electronic commerce
Experiment
Experimental economics
Experiments
Heuristic
Heuristics
Internet
Learning
Math Applications in Computer Science
Online
Operations Research/Decision Theory
Optimization
Price search
Price theory
Prices
Shopping
Students
Studies
Textbooks
Online
Price search
Experiment
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Description
Summary:Consumers check few sites in online purchases. Previous research and experiments we perform demonstrate that consumers can not calculate the optimal strategy for price search. They use heuristics whose performance is better than random and less than optimal. To investigate online price search performance we survey student online textbook purchases. Students achieve good performance because they start with a good strategy and online market organization of marketplace and meta-search sites. An important factor is that algorithms at sites searched perform calculations that reduce the computational complexity of the search.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0927-7099
1572-9974
DOI:10.1007/s10614-011-9276-9