SEARCH, Variable Sample Size, A Computational Solution
Morgan (1983) guaranteed that VSS dominated both FSS and SSR. But it is difficult to calculate the optimal sample size and the optimal reservation price both without recall and with full recall. As VSS without recall is a simplification of VSS with full recall, we will present on appendix a VB30 program that calculates only the full recall case. As known, on VSS, the search is sequential and in each period the sample size is variable. As normal, we will extract sellers prices from F(x) that is common knowledge, temporal horizon is T, goods are homogenous, no discount and consumer buys once just one unity of goods.
|Date of creation:||04 Jun 1997|
|Note:||Type of Document - Microsoft Word 6.0; prepared on PC; to print on HP; pages: 9 ; figures: 5 included|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
References listed on IDEAS
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- Peter B. Morgan, 1983. "Search and Optimal Sample Sizes," Review of Economic Studies, Oxford University Press, vol. 50(4), pages 659-675.
- Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 347-368, September.
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