Geographical dispersion of consumer search behaviour

C-Tier
Journal: Applied Economics
Year: 2017
Volume: 49
Issue: 57
Pages: 5740-5752

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

This article investigates whether consumer search behaviour differs across zip codes within the U.S. As an application, daily gasoline price data covering virtually all gas stations within the U.S. are employed to estimate the distribution of search costs in each zip code. The results show that there are significant differences across zip codes regarding the expected number of searches achieved before consumers purchase gasoline. In order to have a systematic explanation, such differences are further connected to geographic, demographic, and economic conditions of the zip codes in a secondary analysis. The corresponding results imply several strategies for gas stations in order to maximize profits/markups; suggestions follow for policy makers and regulators to reduce redistributive effects of information barriers across locations.

Technical Details

RePEc Handle
repec:taf:applec:v:49:y:2017:i:57:p:5740-5752
Journal Field
General
Author Count
1
Added to Database
2026-01-29