Fields of Interest: Industrial Organization, Microeconomic Theory
A new draft of “Opacity and Search Markets” will be uploaded soon. See my Thesis (link) for my results related to opacity.
Abstract:Consider models where consumer choices are represented with either classic discrete choice or ordered search. If consumers correctly anticipate the choices of firms, the set of classic discrete-choice models and the set of ordered-search models generate the same set of demand and payoff functions. Set equality extends to the supply side of these models if consumers observe the choices of firms prior to search. Thus, in certain contexts, classic discrete choice and ordered search are interchangeable models where results in each literature apply to the other literature. This relationship is established with the Geometric Search Model (GSM) which can be used to match any classic discrete-choice model.