The Behavioral and Experimental Economics group has an influential position in this field in the Netherlands and Europe. CREED, the Amsterdam-based group, focuses particularly on three main projects: economics of political decision making; bounded rationality and institutions and experimental economics. The research of the Rotterdam-based group focuses on two broad themes: decision under risk and uncertainty and intertemporal choice.
- Moraga-Gonzalez, J.L., Sandor, Z., Wildenbeest, M.R.
- Journal of Applied Econometrics, 2013, 28 (7), 1205-1223
This paper studies the estimation of the distribution of non-sequential search costs. We show that the search cost distribution is identified by combining data from multiple markets with common search technology but varying consumer valuations, firms’ costs, and numbers of competitors. To exploit such data optimally, we provide a new method based on semi-nonparametric estimation. We apply our method to a dataset of online prices for memory chips and find that the search cost density is essentially bimodal, such that a large fraction of consumers searches very little, whereas a smaller fraction searches a relatively large number of stores.
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