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Feasible Search Behavior

Author

Listed:
  • Hiroto Sato
  • Ryo Shirakawa

Abstract

Consider a situation wherein a decision maker sequentially searches for the best alternative among heterogeneous options with an arbitrary search order. The agent partially learns the value of an option when inspecting it. The information structure jointly determines the ex-ante and ex-post value of investigating each option, thereby shaping the entire learning path. We characterize the set of all search behaviors compatible with some information structure, which forms a polytope. A single information structure rationalizes all these search behaviors, which minimizes the agent's welfare among all information structures. Under certain symmetry assumption over primitives, we also examine the set of all feasible pairs of search and choice behaviors, with and without option sellers' price competition, and prove the same results. Our study not only provides a simple framework for analyzing how information shapes ordered learning paths, but also offers sharp insights into information design and identification problems in such environments.

Suggested Citation

  • Hiroto Sato & Ryo Shirakawa, 2026. "Feasible Search Behavior," Papers 2609.16431, arXiv.org.
    • Handle: RePEc:arx:papers:2609.16431
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    References listed on IDEAS

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