Optimal Search from Multiple Distributions with Infinite Horizon

University of Zurich, Department of Economics, Working Paper No. 262, Revised version

14 Pages Posted: 27 Sep 2017 Last revised: 5 Jan 2018

See all articles by Jean-Michel Benkert

Jean-Michel Benkert

University of Zurich - Department of Economics

Igor Letina

University of Bern - Department of Economics

Georg Nöldeke

University of Basel; University of Basel

Date Written: December 11, 2017

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 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

JEL Classification: D83

Suggested Citation

Benkert, Jean-Michel and Letina, Igor and Nöldeke, Georg, Optimal Search from Multiple Distributions with Infinite Horizon (December 11, 2017). University of Zurich, Department of Economics, Working Paper No. 262, Revised version, Available at SSRN: https://ssrn.com/abstract=3042482 or http://dx.doi.org/10.2139/ssrn.3042482

Jean-Michel Benkert (Contact Author)

University of Zurich - Department of Economics ( email )

Zürich
Switzerland

Igor Letina

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Georg Nöldeke

University of Basel ( email )

Peter Merian-Weg 6
Basel, 4002
Switzerland

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

University of Basel ( email )

Peter Merian-Weg 6
Basel, 4002
Switzerland

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

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