An experimental test of a search model under ambiguity

Takao Asano; Hiroko Okudaira; Masaru Sasaki

doi:10.1007/s11238-015-9488-x

An experimental test of a search model under ambiguity

Takao Asano, Hiroko Okudaira, Masaru Sasaki

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

Abstract

The objective of this study is to design a laboratory experiment to explore the effect of ambiguity on a subject’s search behavior in a finite-horizon sequential search model. In so doing, we employ a strategy to observe the potential trend of reservation points that is usually unobserved. We observe that subjects behaving consistently across treatments reduce their reservation points in the face of ambiguity over point distribution. Our result is consistent with the theoretical implication obtained by Nishimura and Ozaki (J Econ Theory 119:299–333, 2004).

Original language	English
Pages (from-to)	627-637
Number of pages	11
Journal	Theory and Decision
Volume	79
Issue number	4
DOIs	https://doi.org/10.1007/s11238-015-9488-x
Publication status	Published - Dec 1 2015

Keywords

Ambiguity
Experiment
Reservation point
Search model

ASJC Scopus subject areas

Decision Sciences(all)
Developmental and Educational Psychology
Arts and Humanities (miscellaneous)
Applied Psychology
Social Sciences(all)
Economics, Econometrics and Finance(all)
Computer Science Applications

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10.1007/s11238-015-9488-x

Cite this

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abstract = "The objective of this study is to design a laboratory experiment to explore the effect of ambiguity on a subject{\textquoteright}s search behavior in a finite-horizon sequential search model. In so doing, we employ a strategy to observe the potential trend of reservation points that is usually unobserved. We observe that subjects behaving consistently across treatments reduce their reservation points in the face of ambiguity over point distribution. Our result is consistent with the theoretical implication obtained by Nishimura and Ozaki (J Econ Theory 119:299–333, 2004).",

keywords = "Ambiguity, Experiment, Reservation point, Search model",

author = "Takao Asano and Hiroko Okudaira and Masaru Sasaki",

note = "Funding Information: The authors are grateful to Associate Editor for his/her detailed comments and suggestions that have improved this paper substantially. The authors also thank Takanori Adachi, Keiko Aoki, Yasuyo Hamaguchi, Youichiro Higashi, Yoichi Hizen, Chiang Hui-Yu, and Keisuke Kawata and the participants in the JEA Meeting, the EPA Meeting, and Xiamen University conference. Financial support from the Zengin Foundation for Studies on Economics and Finance, MEXT (No. 23000001, 23530275, and 26380240), GCOE and the ISER grant (Osaka University) the Joint Research Program of KIER are gratefully acknowledged. Okudaira acknowledges a grant from JSPS Postdoctoral Fellowship for Research Abroad. All errors are our responsibility. Publisher Copyright: {\textcopyright} 2015, Springer Science+Business Media New York.",

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doi = "10.1007/s11238-015-9488-x",

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AU - Sasaki, Masaru

N1 - Funding Information: The authors are grateful to Associate Editor for his/her detailed comments and suggestions that have improved this paper substantially. The authors also thank Takanori Adachi, Keiko Aoki, Yasuyo Hamaguchi, Youichiro Higashi, Yoichi Hizen, Chiang Hui-Yu, and Keisuke Kawata and the participants in the JEA Meeting, the EPA Meeting, and Xiamen University conference. Financial support from the Zengin Foundation for Studies on Economics and Finance, MEXT (No. 23000001, 23530275, and 26380240), GCOE and the ISER grant (Osaka University) the Joint Research Program of KIER are gratefully acknowledged. Okudaira acknowledges a grant from JSPS Postdoctoral Fellowship for Research Abroad. All errors are our responsibility. Publisher Copyright: © 2015, Springer Science+Business Media New York.

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N2 - The objective of this study is to design a laboratory experiment to explore the effect of ambiguity on a subject’s search behavior in a finite-horizon sequential search model. In so doing, we employ a strategy to observe the potential trend of reservation points that is usually unobserved. We observe that subjects behaving consistently across treatments reduce their reservation points in the face of ambiguity over point distribution. Our result is consistent with the theoretical implication obtained by Nishimura and Ozaki (J Econ Theory 119:299–333, 2004).

AB - The objective of this study is to design a laboratory experiment to explore the effect of ambiguity on a subject’s search behavior in a finite-horizon sequential search model. In so doing, we employ a strategy to observe the potential trend of reservation points that is usually unobserved. We observe that subjects behaving consistently across treatments reduce their reservation points in the face of ambiguity over point distribution. Our result is consistent with the theoretical implication obtained by Nishimura and Ozaki (J Econ Theory 119:299–333, 2004).

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KW - Reservation point

KW - Search model

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An experimental test of a search model under ambiguity

Abstract

Keywords

ASJC Scopus subject areas

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