On 21st October 2019 (1-2pm) Adrian Hillenbrand, senior research fellow at the Max Planck Institute for Research on Collective Goods, will give a presentation about “Strategic Inattention in Product Search” in Q4.245. Afterwards, Mr. Hillenbrand will be available for questions and discussions. His presentation is part of: https://wiwi.uni-paderborn.de/dep1/me/research/discussing-research/seam/
Rapid technological developments in online markets fundamentally change the relationship between consumers and sellers. Online platforms can now easily gather data about the consumer and his search behavior, that allow for price discrimination. Therefore the consumers' product search becomes a strategic choice. Consumers face a trade-off: Search intensely and receive a better fit at a potentially higher price or restrict search behavior -- be strategically inattentive -- and receive a worse fit, but maybe a better deal. We study the resulting strategic buyer-seller interaction theoretically as well as experimentally. Our experimental results shed a critical light on the added value for consumers through the rise of online platforms.