Sequential Search Experiment

Charles Holt

Information and Uncertainty

Experiment Software

This program sets up a single-person decision problem in which the subject pays a cost for each random draw from a specified uniform distribution of prize values. This is a standard sequential search problem. The search sequence stops when a draw is accepted, and the payoff is the accepted draw minus the product of the search cost and the number of purchased draws. The exercise consists of three parts, each with a specified number of search sequences. The search cost and other treatment variables may be different for each part.