The Value of Information for Selected Appliances

A model expressing the relation between gains to search and a consumer's preference function is developed, but for four of five appliances to which the model was applied, extensive search would not be worthwhile for a consumer whose preferences approximate the market hedonic price function.

Abstract

A model expressing the relation between gains to search and a consumer's preference function is developed. For four of five appliances to which the model was applied, extensive search would not be worthwhile for a consumer whose preferences approximate the market hedonic price function.