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20 décembre 2017
- handle: 10670/1.3aw55q
- halshs: halshs-01806502
- doi: 10.1515/bejte-2016-0048
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info:eu-repo/semantics/altIdentifier/doi/10.1515/bejte-2016-0048
Mots-clés
Nash bargaining sequential search social welfare search cost D - Microeconomics/D.D4 - Market Structure, Pricing, and Design/D.D4.D40 - General D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D83 - Search • Learning • Information and Knowledge • Communication • Belief • Unawareness L - Industrial Organization/L.L0 - GeneralSujets proches
Expenses Costs (Economics)Citer ce document
Zhiwen Li et al., « How Increasing Supplier Search Cost Can Increase Welfare », HAL-SHS : économie et finance, ID : 10.1515/bejte-2016-0048
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Résumé
Reductions in search costs are generally found to increase efficiency and welfare. Using a simple search model we show that when an upstream firm incurs a search cost to identify a potential trading partner and the two parties then negotiate the wholesale price, a reduction in search cost can actually reduce welfare. Furthermore, in a market driven by seller search, a search cost of zero is never socially optimal.