Data and Code for: "Startup Search Costs"

Principal Investigator(s): View help for Principal Investigator(s) David Byrne, University of Melbourne; Nicolas de Roos, University of Sydney

Version: View help for Version V1

Name	File Type	Size	Last Modified
Analysis			11/16/2020 10:23:PM
Build			11/16/2020 10:23:PM
Matlab			11/16/2020 10:23:PM
README.pdf	application/pdf	84.6 KB	11/16/2020 05:23:PM

Project Description

Summary: Workhorse economic models used for studying the market impacts of search frictions assume constant search costs: individuals pay the same cost to obtain price information each time they search. This paper provides evidence on a new form of search costs: startup costs. Exploiting a natural experiment in retail gasoline, we document how a temporary, large exogenous shock to consumers' search incentives leads to a substantial, permanent increase in price search. A standard search model fails to explain such history-dependence in search, while it follows directly from a model with a one-time up-front cost to start searching.

Scope of Project

Subject Terms: Search; Price Dispersion; Price War; Retail Gasoline

JEL Classification:
D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
L81 Retail and Wholesale Trade; e-Commerce

Geographic Coverage: Perth, Australia

Methodology

Data Source: Pricing and Search Data: Fuelwatch
https://www.fuelwatch.wa.gov.au/fuelwatch/pages/public/historicalFileDownloadRetail.jspx

SA1, DZN Mapping Data: Australian Bureau of Statistics
https://www.abs.gov.au/websitedbs/d3310114.nsf/home/digital+boundaries

Unit(s) of Observation: Calendar date

Geographic Unit: Urban area

Related Publications

Download this project

Published Versions

V1 [2022-04-14]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.