On the Depth and Dynamics of Online Search Behavior
Management Science
Search and Collusion in Electronic Markets
Management Science
A Model of Search Intermediaries and Paid Referrals
Information Systems Research
Using online search data to forecast new product sales
Decision Support Systems
A model on location-based service as infomediary
Proceedings of the 14th Annual International Conference on Electronic Commerce
Effects of the Presence of Organic Listing in Search Advertising
Information Systems Research
Optimal keyword auctions for optimal user experiences
Decision Support Systems
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In this paper, we set up a game-theoretic model to examine oligopolistic price competition, considering two features of online search: the existence of a common search ordering and shoppers who have nonpositive search cost. We find that in equilibrium firms set their prices probabilistically rather than deterministically, and different firms follow different price distributions. The equilibrium pricing pattern exhibits an interesting local-competition feature in which direct price competition occurs only between firms adjacent to each other. Further, we incorporate consumers' search strategies into the model so that both search order and stopping rules are determined rationally by consumers. We show that similar patterns may continue to hold in the fully rational framework when consumers have higher inspection costs for inferior positions.