Optimal search from multiple distributions with infinite horizon

Jean-Michel Benkert, Igor Letina and Georg Nöldeke

Economics Letters, 2018, vol. 164, issue C, 15-18

Abstract: With infinite horizon, optimal rules for sequential search from a known distribution feature a constant reservation value that is independent of whether recall of past options is possible. We extend this result to the case when there are multiple distributions to choose from: it is optimal to sample from the same distribution in every period and to continue searching until a constant reservation value is reached.

Keywords: Optimal search; Search intensity; Infinite horizon; Recall (search for similar items in EconPapers)
JEL-codes: D83 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Optimal search from multiple distributions with infinite horizon (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:164:y:2018:i:c:p:15-18

DOI: 10.1016/j.econlet.2017.12.032

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