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PUBLIC GOODS AND CONTINGENT VALUATION ROBERT SUGDEN

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The crucial assumption that allows as to solve the two-good model relatively simply is the ability of the shoppers to combine purchases from two stores without incurring additional cost. This assumption can be justi ed for internet shopping or the cases when as Stahl, II (1989) puts it \Casual empiricism suggests that there is a non-negligible measure of consumers who seem to derive enjoyment from shopping itself". It is equivalent to an assumption of costless recall in the sequential search literature as essentially the captives nd out prices at two stores and are able to \go back" if one or both prices are lower at the rst shop...

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