@techreport{ac47e6ff42a44d70addd6403fa74fc41,
title = "Optimal Search and Awareness Expansion",
abstract = "This paper introduces a search problem where a consumer has to first become aware of an alternative, before being able to search it. Initially, the consumer is aware of only a few alternatives. During search, the consumer sequentially decides between searching alternatives he is already aware of and expanding awareness to discover more products. I show that the optimal policy for this search problem is fully characterized by simple reservation values. Moreover, I prove that the purchase outcome of a consumer optimally solving the search problem is equivalent to the consumer simply choosing the product offering the largest value on a predetermined index.",
keywords = "sequential search, limited awareness, information aquisition",
author = "Rafael Greminger",
note = "CentER Discussion Paper No. 2019-034",
year = "2019",
month = nov,
day = "19",
language = "English",
volume = "2019-034",
series = "CentER Discussion Paper",
publisher = "CentER, Center for Economic Research",
type = "WorkingPaper",
institution = "CentER, Center for Economic Research",
}