عدنان العبار’s Reviews > The Theory of Price > Status Update
عدنان العبار
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"To maximize his utility, the buyer searches for additional prices until the expected saving from the purchase equals the cost of visiting one more dealer. Then he stops searching and buys from the dealer who quotes the lowest price he has encountered."
Amazing example at the start of a textbook. I LOVE Stigler.
— Jul 14, 2026 01:42PM
Amazing example at the start of a textbook. I LOVE Stigler.
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عدنان’s Previous Updates
عدنان العبار
is on page 2 of 371
Suppose you were looking to buy a specific car, let's say a build of Lincoln. You know that sellers would offer different prices, but you don't know every seller's price or location.
When you survey the sellers, you will soon encounter a low enough price; and every subsequent visit will offer—highly probably—a higher price around the average. You will stop searching when the price-difference expected isn't worth it.
— Jul 14, 2026 01:40PM
When you survey the sellers, you will soon encounter a low enough price; and every subsequent visit will offer—highly probably—a higher price around the average. You will stop searching when the price-difference expected isn't worth it.