Date

8-1-2018

Document Type

Dissertation

Degree

Doctor of Philosophy

Department

Economics

First Adviser

Yao, Yuliang

Abstract

Consumers face various costs when investigating and purchasing products in either online or offline markets: the travel cost to visit a store and the search cost to examine the product attributes once they are at a store. The relative magnitude of the costs may lead to different store pricing and consumer search behavior. This dissertation builds game-theoretic search models and examines the interaction between store pricing and consumer search behavior under travel and search costs, and positive stockout probabilities in Chapter 1. To quantify the difference in consumer demand under different costs, a structural demand model has been developed to empirically examine consumer demand regarding prices and stockouts between online and offline markets in Chapter 2. This dissertation extends the empirical structural demand model and estimates the consumer demand for products across different categories. The contribution of the dissertation is that it advances the knowledge and understanding of consumer demand by: (1) separating the travel and search costs associated with consumer demand during a shopping trip; (2) providing empirical evidence that supports the relevant theories between online and offline markets; and, by (3) shedding light on consumer demand across product categories.

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