Quality Competition with Stochastic Demand and Costly Search. Theory and Evidence from the Video Rental Market. Amanda King John King School of Economic Development Georgia Southern University. Characteristics of Video Rental Market. Uncertain demand for product
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Quality Competition with Stochastic Demand and Costly Search
Theory and Evidence from the Video Rental Market
School of Economic Development
Georgia Southern University
One Regional Consumer Doesn’t Search Anymore
Other Regional Consumers are More Likely To Search
Non-Regional Customers Search More
The overall effect can be shown to be positive at least for the uniform distribution and is likely to be so for others.
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