search query: @author Ramey, G. / total: 9
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| Author: | Bagwell, K. Ramey, G. |
| Title: | Coordination economies, advertising, and search behavior in retail markets |
| Journal: | American Economic Review
1994 : JUN, VOL. 84:3, p. 498-517 |
| Index terms: | ADVERTISING RETAILING MARKETS |
| Language: | eng |
| Abstract: | The authors introduce a model of the retail firm in which consumers and active firms benefit collectively from coordination of sales at fewer firms. Using this model, the authors show that ostensibly uninformative advertising plays a key role in bringing about coordination economies, by directing consumer search toward firms that offer the best deals. Optimal consumer search takes the form of a simple rule of thumb that uses observed advertising information to guide search. |
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