According to Stigler's Search Model,a Computerized Used Car Search Service

question 117

Multiple Choice

According to Stigler's search model,a computerized used car search service is likely to_____

• A)increase the opportunity cost of time.
• B)decrease the amount of search.
• C)increase price dispersion.
• D)decrease price dispersion.
• E)lower the marginal benefit of search.

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Definitions:

Low-Ball Technique

The low-ball technique is a tactic in persuasion that involves initially presenting an attractive offer or price which is then increased after initial agreement.

Consistency

The quality of always behaving or performing in a similar way, following the same principles or course.

Labeling Technique

A social psychology strategy where one labels a person or group with a term in order to influence their behavior or perception, often used in persuasion and compliance.

Commitment And Consistency

The psychological principle that suggests individuals strive to be consistent in their beliefs and actions, especially when they have made a public commitment.