Understanding the impact of costly search on market equilibria: A comprehensive review

When consumers lack the necessary knowledge on product characteristics, in order to conclude on a purchase decision, they may need to gather information first. Collecting information is a costly process, enveloped by a degree of personalization that depends on each person's idiosyncrasy. The amount of time spent searching to reveal information depends on individual expectations and preferences, while the way this amount of time should be spent is also a matter subject to personal interpretation. Understanding the interaction between the existing competitive forces and consumer search behavior can provide useful insights and further enhance our knowledge of markets with partial information and costly searchers.