Template-Type: ReDIF-Article 1.0

Author-Name: Humberto M. Ennis
Author-Workplace-Name: Cornell University

Title: On Search Theory and Customers

Abstract: This paper studies a simple model of decentralized exchange where consumers have to search for a seller that provides the services they want. Once a buyer finds one of these “good” stores, a customer relationship between the two develops. We study the factors on which the formation of this link depends and some of their properties and characteristics. We define a Customers Steady State Equilibrium and give conditions under which one of these exists. Finally, we show how these customer relationships impose a certain sluggishness on the economy as it responds to changes in the cost of production. 

Journal: Económica
Pages: 3-21
Volume: XLVI
Issue: 1
Year: 2000
Month: January-June

File-URL: https://revistas.unlp.edu.ar/Economica/article/view/8532/7079
File-Format: Application/pdf
Handle: RePEc:akh:journl:507