Discussion paper

DP11566 Ordered Consumer Search

The paper discusses situations in which consumers search through their options in a deliberate order, in contrast to more familiar models with random search. Topics include: the existence of ordered search equilibria with symmetric sellers (all consumers first inspect the seller they anticipate sets the lowest price, and a seller which is inspected first by consumers will set the lowest price); the use of price and non-price advertising to direct search; the impact of consumers starting a new search at their previous supplier; and the incentive a seller can have to raise its own search cost. I also show how ordered search can be reformulated as a simpler discrete choice problem without search frictions or dynamic decision making.


Armstrong, M (2016), ‘DP11566 Ordered Consumer Search‘, CEPR Discussion Paper No. 11566. CEPR Press, Paris & London. https://cepr.org/publications/dp11566