Search with Multiple Attributes: Theory and Empirics

56 Pages Posted: 29 Jun 2014 Last revised: 20 May 2017

See all articles by Adam Sanjurjo

Adam Sanjurjo

Universidad de Alicante - Departamento de Fundamentos del Análisis Económico

Date Written: August 17, 2016

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.

Keywords: Search Theory, Multiple Attributes, Consumer Choice, Procedural Cognition

JEL Classification: D11, D12, D81, D83

Suggested Citation

Sanjurjo, Adam, Search with Multiple Attributes: Theory and Empirics (August 17, 2016). Available at SSRN: https://ssrn.com/abstract=2460129 or http://dx.doi.org/10.2139/ssrn.2460129

Adam Sanjurjo (Contact Author)

Universidad de Alicante - Departamento de Fundamentos del Análisis Económico ( email )

Campus de San Vicente
Alicante, 03690
Spain

HOME PAGE: http://sites.google.com/site/adamangelsanjurjo/

Register to save articles to
your library

Register

Paper statistics

Downloads
150
Abstract Views
582
rank
193,045
PlumX Metrics