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Search by Committee

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Abstract

We consider the problem of sequential search when the decision to stop searching is made by a committee. We show that a symmetric stationary equilibrium exists and is unique given that the distribution of rewards is log concave. Committee members set a lower acceptance threshold than do single-agent searchers. In addition, mean preserving spreads in the distribution of rewards may lower each member's continuation value | an impossibility in the single-agent setting. If committee members are very patient or very impatient, expected search duration is lower than it would be for a single agent, but, for intermediate levels of patience, this comparison may be reversed. Holding the fraction of votes required to stop fixed, expected search duration rises with committee size on patient committees but falls with committee size on impatient committees. Finally, we consider the effect of varying the number of votes required to stop, holding committee size constant. We show that the welfare-maximizing vote threshold increases in the rate of patience and that there is a finite bound on patience such that unanimity is welfare maximizing.

Suggested Citation

  • James Albrecht & Axel Anderson & Susan Vroman, 2007. "Search by Committee," Working Papers gueconwpa~07-07-09, Georgetown University, Department of Economics.
  • Handle: RePEc:geo:guwopa:gueconwpa~07-07-09
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    References listed on IDEAS

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    1. Mark Bagnoli & Ted Bergstrom, 2005. "Log-concave probability and its applications," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), pages 445-469.
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    10. Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey: Part I," Economic Inquiry, Western Economic Association International, vol. 14(2), pages 155-189, June.
    11. Burdett, Kenneth, 1996. "Truncated means and variances," Economics Letters, Elsevier, vol. 52(3), pages 263-267, September.
    12. Timothy Feddersen & Wolfgang Pesendorfer, 1996. "Convicting the Innocent: The Inferiority of Unanimous Jury Verdicts," Discussion Papers 1170, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    13. Alexander Shapiro & Jos Berge, 2002. "Statistical inference of minimum rank factor analysis," Psychometrika, Springer;The Psychometric Society, pages 79-94.
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    Citations

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    Cited by:

    1. Inukai, Keigo & Kawata, Keisuke & Sasaki, Masaru, 2017. "Committee Search with Ex-ante Heterogeneous Agents: Theory and Experimental Evidence," IZA Discussion Papers 10760, Institute for the Study of Labor (IZA).
    2. Guler, Bulent & Guvenen, Fatih & Violante, Giovanni L., 2012. "Joint-search theory: New opportunities and new frictions," Journal of Monetary Economics, Elsevier, vol. 59(4), pages 352-369.
    3. Rohan DUTTA, 2016. "Joint Search with No Information: An Inefficient Immediate Agreement Theorem," Cahiers de recherche 12-2016, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    4. Bruno Strulovici, 2010. "Learning While Voting: Determinants of Collective Experimentation," Econometrica, Econometric Society, vol. 78(3), pages 933-971, May.
    5. Björn Nilsson, 2017. "The School-to-work transition in developing countries," Working Papers DT/2017/07, DIAL (Développement, Institutions et Mondialisation).
    6. J. Ignacio García-Pérez & Sílvio Rendon, 2016. "Family Job Search and Wealth: The Added Worker Effect Revisited," Working Papers 2016-10, FEDEA.
    7. Olivier Compte & Philippe Jehiel, 2010. "Bargaining and Majority Rules: A Collective Search Perspective," Journal of Political Economy, University of Chicago Press, vol. 118(2), pages 189-221, April.
    8. Ulbricht, Robert, 2016. "Optimal delegated search with adverse selection and moral hazard," Theoretical Economics, Econometric Society, vol. 11(1), January.
    9. Jan Eeckhout, 2012. "Matching Information," 2012 Meeting Papers 835, Society for Economic Dynamics.
    10. Mauring, Eeva, 2016. "A two-agent model of sequential search and choice," Journal of Economic Behavior & Organization, Elsevier, vol. 123(C), pages 122-137.
    11. Dirk Bergemann & Juuso Valimaki, 2011. "Efficient Search by Committee," Levine's Working Paper Archive 786969000000000020, David K. Levine.
    12. Hizen, Yoichi & Kawata, Keisuke & Sasaki, Masaru, 2013. "An experimental test of a committee search model," European Economic Review, Elsevier, pages 59-76.
    13. Moscarini, Giuseppe & Wright, Randall, 2010. "Introduction to Search Theory and Applications," Journal of Economic Theory, Elsevier, vol. 145(4), pages 1319-1324, July.
    14. Valladares-Esteban, Arnau & Choi, Sekyu, 2016. "The marriage unemployment gap," Discussion Paper Series In Economics And Econometrics 1509, Economics Division, School of Social Sciences, University of Southampton.
    15. Bruno Strulovici, 2010. "Learning While Voting: Determinants of Collective Experimentation," Econometrica, Econometric Society, vol. 78(3), pages 933-971, 05.

    More about this item

    Keywords

    sequential search; voting; committees;

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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