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The Sequential Search Model: A Framework for Empirical Research

Author

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  • Raluca Ursu
  • Stephan Seiler
  • Elisabeth Honka

Abstract

We provide a detailed overview of the empirical implementation of the sequential search model proposed by Weitzman (1979). We discuss the assumptions underlying the model, the identification of search cost and preference parameters, elasticities and welfare formulas, and different estimation approaches. The goal of this paper is to consolidate knowledge and provide a unified treatment of various aspects of sequential search models that are relevant for empirical work.

Suggested Citation

  • Raluca Ursu & Stephan Seiler & Elisabeth Honka, 2023. "The Sequential Search Model: A Framework for Empirical Research," CESifo Working Paper Series 10264, CESifo.
    • Handle: RePEc:ces:ceswps:_10264
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10264.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ziv Scully & Laura Doval, 2024. "Local hedging approximately solves Pandora's box problems with nonobligatory inspection," Papers 2410.19011, arXiv.org, revised Jan 2025.
    2. Honka, Elisabeth & Seiler, Stephan & Ursu, Raluca, 2024. "Consumer search: What can we learn from pre-purchase data?," Journal of Retailing, Elsevier, vol. 100(1), pages 114-129.
    3. Gibbard, Peter, 2023. "Search with two stages of information acquisition: A structural econometric model of online purchases," Information Economics and Policy, Elsevier, vol. 65(C).

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    More about this item

    Keywords

    sequential search model;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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