Arbeitspapier

On The Relevance Of Irrelevant Information

This paper analyses the role of information in the search process. Ibuild a simple model of a good with two random attributes with somejoint probability distribution. I consider seemingly unimportant changesin this distribution, i.e. changes which neither affect expected utility norits variance. These changes have a great impact on the search behaviour:the customer may start to search the characteristics and buy the goodeven if she did not do so before. The optimal search rule is derived andthe model is generalized to multiple objects.

Language
Englisch

Bibliographic citation
Series: Tinbergen Institute Discussion Paper ; No. 09-087/1

Classification
Wirtschaft
Microeconomic Behavior: Underlying Principles
Information, Knowledge, and Uncertainty: General
Subject
Search
Consumer Search
Value of Information
Konsumentenverhalten
Produktinformation
Informationswert
Suchtheorie
Theorie

Event
Geistige Schöpfung
(who)
Parakhonyak, Alexei
Event
Veröffentlichung
(who)
Tinbergen Institute
(where)
Amsterdam and Rotterdam
(when)
2009

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Parakhonyak, Alexei
  • Tinbergen Institute

Time of origin

  • 2009

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