We develop and estimate a model of consumer search with spatial learning. Consumers make inferences from previously searched objects to unsearched objects that are nearby in attribute space, generating path dependence in search sequences. The estimated model rationalizes patterns in data on online consumer search paths: search tends to converge to the chosen product in attribute space, and consumers take larger steps away from rarely purchased products. Eliminating spatial learning reduces consumer welfare by 12%: cross‐product inferences allow consumers to locate better products in a shorter time. Spatial learning has important implications for product recommendations on retail platforms. We show that consumer welfare can be reduced by unrepresentative product recommendations and that consumer‐optimal product recommendations depend on both consumer learning and competition between platforms.
MLA
Hodgson, Charles, and Gregory Lewis. “You Can Lead a Horse to Water: Spatial Learning and Path Dependence in Consumer Search.” Econometrica, vol. 93, .no 4, Econometric Society, 2025, pp. 1299-1332, https://doi.org/10.3982/ECTA19576
Chicago
Hodgson, Charles, and Gregory Lewis. “You Can Lead a Horse to Water: Spatial Learning and Path Dependence in Consumer Search.” Econometrica, 93, .no 4, (Econometric Society: 2025), 1299-1332. https://doi.org/10.3982/ECTA19576
APA
Hodgson, C., & Lewis, G. (2025). You Can Lead a Horse to Water: Spatial Learning and Path Dependence in Consumer Search. Econometrica, 93(4), 1299-1332. https://doi.org/10.3982/ECTA19576
Supplement to "You Can Lead a Horse to Water: Spatial Learning and Path Dependence in Consumer Search"
Charles Hodgson and Gregory Lewis
The replication package for this paper is available at https://doi.org/10.5281/zenodo.15007343. The Journal checked the data and codes included in the package for their ability to reproduce the results in the paper and approved online appendices.
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