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Search and Active Learning with Correlated Information: Empirical Evidence from Mid-Atlantic Clam Fishermen

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  • Marcoul, Philippe
  • Weninger, Quinn

Abstract

This paper examines search with active learning and correlated information. We first develop a simple model to show how correlation affects the decision to acquire information. A unique data set on fishing site choice by mid-Atlantic clam fishermen is used to test the model predictions. Results find that clam fishermen search new sites when the catch at familiar sites declines, i.e., when the opportunity cost of gathering information is low, but also when catch at familiar sites is on the rise. Search following a catch decline occurs at spatially distant sites whereas search following a catch increase occurs at nearby sites. Correlated learning is crucial for explaining the site choice patterns in our data. These results provide new insights that may extend to a variety of economic search problems where correlated learning is important.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11601.

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Date of creation: 01 Jan 2008
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Publication status: Published in Journal of Economic Dynamics and Control 2008, vol. 32, pp. 1921-1948
Handle: RePEc:isu:genres:11601

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Citations

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Cited by:
  1. Andrew T. Ching & Tülin Erdem & Michael P. Keane, 2013. "Learning Models: An Assessment of Progress, Challenges and New Developments," Economics Papers 2013-W07, Economics Group, Nuffield College, University of Oxford.
  2. Evans, Keith S. & Weninger, Quinn, 2010. "Information Sharing and Cooperative Search in Fisheries," Staff General Research Papers 31606, Iowa State University, Department of Economics.
  3. Weninger, Quinn, 2012. "Search and Learning in the Alaskan Halibut Fishery: Overview of the Field Data Collection," Staff General Research Papers 34759, Iowa State University, Department of Economics.
  4. Keith Evans & Quinn Weninger, 2014. "Information Sharing and Cooperative Search in Fisheries," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 58(3), pages 353-372, July.
  5. Matthew N. Reimer & Joshua K. Abbott & James E. Wilen, 2013. "Unraveling the Multiple Margins of Rent Generation from Individual Transferable Quotas," Working Papers 2013-03, University of Alaska Anchorage, Department of Economics.

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