Consumer Online Search with Partially Revealed Information

Modern-day search platforms generally have two layers of information presentation. The outer layer displays the collection results with attributes selected by platforms, and consumers click on a product to reveal all its in inner layer. revealed affects costs probability finding match. To address managerial question optimal layout, we create an complexity measure layer, namely orderedness entropy, study consumer process for at expense time cognitive costs. We first conduct online random experiments show that respond actively reduce cost which our provides representation. Then, using unique rich panel tracking behaviors large travel agency (OTA), specify novel sequential model jointly describes refinement clicking decisions. find is major component cost, while loading has much smaller share. By varying propose layouts Pareto-improve both revenue welfare OTA. This paper was accepted Juanjuan Zhang, marketing.