Abstract
This study proposes and empirically tests a dynamic model of consumer information search behavior for groceries, which incorporates human capital. By building a formal model that demonstrates interactions between the determinants of search, we are able to distinguish between different types of human capital, and to provide insight into the measurement of each type. We test this model employing survey data on consumer perceptions of the various variables in our model in the domain of grocery shopping. In general, we find that self-reported search for information about buying groceries is related to perceptions of the benefits and costs of search in a manner predicted by our theory.
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