Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Marina Halac • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jul, 2025, Volume 93, Issue 4

You Can Lead a Horse to Water: Spatial Learning and Path Dependence in Consumer Search

https://doi.org/10.3982/ECTA19576
p. 1299-1332

Charles Hodgson|Gregory Lewis

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.


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Supplemental Material

Supplement to "You Can Lead a Horse to Water: Spatial Learning and Path Dependence in Consumer Search"

Charles Hodgson and Gregory Lewis

This supplement contains material not found within the manuscript.

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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