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
Date Written: December 11, 2017
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: Suggested Citation