On Generalized Secretary Problems
20 Pages Posted: 19 Apr 2005
Date Written: November 2004
This paper is composed of two related parts. In the first, we present a dynamic programming procedure for finding optimal policies for a class of sequential search problems that includes the well-known secretary problem. In the second, we propose a stochastic model of choice behavior for this class of problems and test the model with two extant data sets. We conclude that the previously reported bias for decision makers to terminate their search too early can, in part, be accounted for by a stochastic component of their search policies.
Keywords: Sequential search, secretary problem, decision making, model
JEL Classification: D83, C44, C61
Suggested Citation: Suggested Citation