Friday Meeting - Imen Bouhlel (GREDEG)

"Theoretical and Experimental Investigation of an Individual Sequential Search Problem"
Quand ? Le 21-04-2017,
de 10:00 à 12:00
Où ? ISEM - Salle SCI
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SCI ISEM – 10:00-12:00

Imen Bouhlel

Title: Theoretical and Experimental Investigation of an Individual Sequential Search Problem

Abstract: Information search and opinion formation are central aspects of decision making in consumers choices. Indeed, before taking a decision, the alternatives among which the “rational” choice will be made should be clearly valued. In standard economic theory, the search dynamics is mainly neglected because the process is assumed to be carried out without any cost or without spending time. However, whenever only a significative collection of experience can provide the bulk of relevant information to make the best choice, as it is the case for experience goods (Nelson, 1970), some engendered costs in collecting such information might be considered. Our paper lies on the conceptual framework for the analysis of an individual search task related to the consumption of an experience good. In our model, we suppose that a best choice exists among a set of alternatives and the customer is willing to locate it. The total amount of time for searching is finite and the customer aims at maximizing the expected payoff given by an exploration-exploitation compromise. We theoretically model our situation as a class of stopping rule problems, then we experimentally test the results. We also study the learning dynamics and propose a possible interpretation in terms of regret.