Consumer Search, Steering, and Choice Overload

S-Tier
Journal: Journal of Political Economy
Year: 2024
Volume: 132
Issue: 5
Pages: 1684 - 1739

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/728108
Journal Field
General
Author Count
2
Added to Database
2026-01-26