Search with multiple attributes: Theory and empirics
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http://hdl.handle.net/10045/68204
Title: | Search with multiple attributes: Theory and empirics |
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Authors: | Sanjurjo, Adam |
Research Group/s: | Microeconomía Aplicada (GIMA) |
Center, Department or Service: | Universidad de Alicante. Departamento de Fundamentos del Análisis Económico |
Keywords: | Search theory | Optimal sequential search | Multiple attributes | Procedural cognition | Bounded rationality | Working memory capacity |
Knowledge Area: | Fundamentos del Análisis Económico |
Issue Date: | Jul-2017 |
Publisher: | Elsevier |
Citation: | Games and Economic Behavior. 2017, 104: 535-562. doi:10.1016/j.geb.2017.05.009 |
Abstract: | Multiple attribute search is a central feature of economic life: we consider much more than price when purchasing a home, and more than wage when choosing a job. Nevertheless, while single attribute search problems have been studied extensively, little is known about optimal search in multiple attribute environments. I introduce a partial characterization of optimal sequential search in a problem with multiple searchable attributes and alternatives, no order restrictions on search, and full recall. Upon applying the partial rational benchmark to a rich dataset I find that subjects systematically deviate from optimal sequential search by: (1) searching too deeply within alternatives and (2) switching too adjacently between alternatives. I explore how these deviations affect payoffs, and discuss why they may be boundedly rational. |
Sponsor: | Financial support from the Spanish Ministerio de Ciencia y Tecnología and Feder Funds (SEJ-2007-62656), and the Spanish Ministry of Economics and Competition (ECO2012-34928) is gratefully acknowledged. |
URI: | http://hdl.handle.net/10045/68204 |
ISSN: | 0899-8256 (Print) | 1090-2473 (Online) |
DOI: | 10.1016/j.geb.2017.05.009 |
Language: | eng |
Type: | info:eu-repo/semantics/article |
Rights: | © 2017 Elsevier Inc. |
Peer Review: | si |
Publisher version: | http://dx.doi.org/10.1016/j.geb.2017.05.009 |
Appears in Collections: | INV - GIMA - Artículos de Revistas |
Files in This Item:
File | Description | Size | Format | |
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2017_Sanjurjo_GamesEconBeh_final.pdf | Versión final (acceso restringido) | 984,84 kB | Adobe PDF | Open Request a copy |
2017_Sanjurjo_GamesEconBeh_preprint.pdf | Preprint (acceso abierto) | 1,86 MB | Adobe PDF | Open Preview |
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