Repeated Price Search

  • Authors:

  • A. Norman;J. Berman;K. Brehm;M. Drake;A. Dyer;J. Frisby;C. Govil;C. Hinchey;L. Heuer;J. Ke;S. Kejriwal;K. Kuang;S. Keyburn;S. Ler;K. Powers;A. Robertson;J. Sanghai;C. Schulze;J. Schieck;J. Sussman;L. Tan;A. Tello;R. Wang;K. Yan;T. Zeinullayev

  • Affiliations:

  • Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA;Department of Economics, The University of Texas at Austin, Austin, USA

  • Venue:
  • Computational Economics
  • Year:
  • 2012

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Abstract

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.