Economics Insights @ CBS

Under fairly general conditions, the article derives the equilibrium price schedule determined by the bids and offers in an open limit order book.

The impact of item-by-item information accessing on uncertainty reduction is studied under self-selected and researcher-constrained information accessing. Study 1 showed that, at both the aggregate and the individual level, subjective uncertainty reduction assumes several distinct patterns, with the dominant pattern conforming to an accelerating or linear power function. Study 2 revealed that different subjective-uncertainty-reduction patterns tend to be associated with within-options versus within-properties searches. Implications of the findings and the procedure are discussed.

The authors examine how new brand entries affect consumers' consideration sets. A within-subject longitudinal experiment examines several entry positions into existing markets. The results suggest that new brand entries produce changes in consideration sets toward dominating, compromise, and assimilated brands, away from extreme brands in two-brand markets, and toward dominating and away from extreme brands in eight-brand markets. These results are confirmed by a second experiment that utilizes a between-subject design and markets with six existing brands.