Download This PaperSelective Bargain Hunting. A Concise Test of Rational Consumer Search
50 Pages Posted: 7 Mar 2019
Date Written: January 27, 2019
Abstract
A model of the allocation of time between work, leisure, and price-search for different goods predicts that consumers spend relatively more time searching for better prices of goods of which they consume relatively more. Using scanner data, we confirm empirically that consumers pay lower (higher) prices for goods that they buy more (less) of than other consumers.
Keywords: Consumption; Consumer Search; Time Use
JEL Classification: E21, D12
Suggested Citation: Suggested Citation
Lee, Chloe and Long, Wen and Luengo-Prado, Maria Jose and Sorensen, Bent E., Selective Bargain Hunting. A Concise Test of Rational Consumer Search (January 27, 2019). Available at SSRN: https://ssrn.com/abstract=3335872 or http://dx.doi.org/10.2139/ssrn.3335872
Chloe Lee
Federal Reserve Bank of Boston
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN