# Recall searching with and without recall

## Author

Listed:
• Daniela Cagno
• Tibor Neugebauer

()

• Carlos Rodriguez-Palmero

## Abstract

We revisit the sequential search problem by Hey (J Econ Behav Organ 8:137–144, 1987 ). In a 2 $$\times$$ × 2 factorial design, varying fixed and random cost treatments with and without recall, we address open research questions that were originally stated by Hey ( 1987 ). Our results provide clear evidence for Hey’s ( 1987 ) conjecture that recall negatively affects performance in sequential search. With experience, however, search behavior with and without recall converges toward the optimal reservation rule. We further find that the utilization of optimal reservation rules is independent from the stochastic nature of the search cost. Copyright Springer Science+Business Media New York 2014

## Suggested Citation

• Daniela Cagno & Tibor Neugebauer & Carlos Rodriguez-Palmero & Abdolkarim Sadrieh, 2014. "Recall searching with and without recall," Theory and Decision, Springer, vol. 77(3), pages 297-311, October.
• Handle: RePEc:kap:theord:v:77:y:2014:i:3:p:297-311
DOI: 10.1007/s11238-014-9444-1
as

File URL: http://hdl.handle.net/10.1007/s11238-014-9444-1

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## References listed on IDEAS

as
1. Daniela Cagno & Tibor Neugebauer & Carlos Rodriguez-Palmero & Abdolkarim Sadrieh, 2014. "Recall searching with and without recall," Theory and Decision, Springer, vol. 77(3), pages 297-311, October.
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Cited by:

1. Daniela Cagno & Tibor Neugebauer & Carlos Rodriguez-Palmero & Abdolkarim Sadrieh, 2014. "Recall searching with and without recall," Theory and Decision, Springer, vol. 77(3), pages 297-311, October.

### Keywords

Experiments; Search; Stopping rule; Recall effect; C90; D53; D92; G02; G11; G12;

### JEL classification:

• C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
• D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
• D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
• G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
• G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
• G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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