An Experimental Test of a Search Model Under Ambiguity

13 Pages Posted: 15 Feb 2014

See all articles by Takao Asano

Takao Asano

Okayama University - Economics; Osaka University - Institute of Social and Economic Research (ISER)

Hiroko Okudaira

Okayama University

Masaru Sasaki

Osaka University - Institute of Social and Economic Research (ISER)

Abstract

This paper's objective is to design a laboratory experiment to explore the effect of ambiguity on a subject's search behavior in a finite-horizon sequential search model. In so doing, we employ a new approach to observe the potential trend of reservation points that is usually unobserved. We observe a significant dip in a trend of reservation points when subjects are faced with ambiguity over wage distributions.

Keywords: experiment, search model, ambiguity, reservation wage

JEL Classification: C91, D81

Suggested Citation

Asano, Takao and Okudaira, Hiroko and Sasaki, Masaru, An Experimental Test of a Search Model Under Ambiguity. Available at SSRN: https://ssrn.com/abstract=2396428 or http://dx.doi.org/10.2139/ssrn.2396428

Takao Asano (Contact Author)

Okayama University - Economics ( email )

Tsushima-naka 3-1-1
Okayama, Okayama 7008530
Japan

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki, Osaka 567-0047
Japan

Hiroko Okudaira

Okayama University ( email )

2-1-1, Tsushimanaka, Okayama-shi
Okayama
Japan
+81-86-251-7542 (Phone)
+81-86-251-7542 (Fax)

Masaru Sasaki

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki, Osaka 567-0047
Japan

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