What are search cost?

Search costs refer to the expenses incurred by consumers or businesses when seeking information about products, services, or market conditions. These costs can include time, effort, and monetary expenses associated with comparing options, finding the best deals, or gathering necessary data. High search costs can lead to reduced market efficiency, as they may deter consumers from exploring alternatives, ultimately affecting competition and pricing. Minimizing search costs can enhance market participation and improve decision-making for buyers and sellers.