Consumer Search and Stock-out: A Laboratory Experiment
ISER DP No. 1104, 2020
50 Pages Posted: 1 Dec 2020
Date Written: October 1, 2020
We investigate the overall impact of stock-out on individual consumers' information search behavior through both search-theoretic and experimental approaches. As the probability of stock-out increases, search intensity decreases, while the expected number of searches may increase. Such increases in stock-out probability also deter consumers from participating in the market.
Keywords: consumer search, stock-out, search experiment, consumer behavior
JEL Classification: C91, D11, D43, D83, L13
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