Consumer Search, Steering, and Choice Overload

• 成果类型: Article
• 署名作者: Nocke, Volker; Rey, Patrick
• 署名单位: University of Mannheim; Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/728108
• 发表日期: 2024
• 页码: 1684-1739
• 关键词: ASSORTMENT; variety; too

摘要

We develop a model of within-firm sequential, directed search and study a firm's ability and incentive to steer consumers. We find that the firm often benefits from adopting a noisy positioning strategy, which limits the information available to consumers. This induces consumers to keep searching but discourages some of them from visiting the firm. This occurs even though the firm and the consumers have in common an interest in maximizing the probability of trade. Because of such noisy positioning, an increase in the size of the product line further discourages consumers from visiting the firm-consistent with choice overload.