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Variability and the Duration of Search

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  • Balvers, Ronald J

Abstract

In a sequential search model without learning, a proportionate mean-preserving spread of the offer distribution has two opposing effects on the expected duration of search: it raises the likelihood that any particular reservation value is exceeded, but also raises the reservation value itself. The net effect depends upon whether the sum of implicit and explicit search costs is positive, zero, or negative. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Bibliographic Info

Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 31 (1990)
Issue (Month): 3 (August)
Pages: 747-51

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Handle: RePEc:ier:iecrev:v:31:y:1990:i:3:p:747-51

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Cited by:
  1. Ashenfelter, Orley C & Graddy, Kathryn, 2002. "Art Auctions: A Survey of Empirical Studies," CEPR Discussion Papers 3387, C.E.P.R. Discussion Papers.
  2. Kathryn Graddy & Orley Ashenfelter, 2002. "Auctions and the Price of Art," Economics Series Working Papers 131, University of Oxford, Department of Economics.
  3. Donald Haurin & Kala Sridhar, 2003. "The impact of local unemployment rates on reservation wages and the duration of search for a job," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1469-1476.
  4. DeSarbo, Wayne S. & Choi, Jungwhan, 1998. "A latent structure double hurdle regression model for exploring heterogeneity in consumer search patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 423-455, November.

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