An experimental test of a search model under ambiguity

Takao Asano; Hiroko Okudaira; Masaru Sasaki

This paper's objective 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 new approach to observe the potential trend of reservation points that is usually unobserved. We observe a significant dip in a trend of reservation points when subjects are faced with ambiguity over wage distributions.

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Year of publication:	2014
Authors:	Asano, Takao ; Okudaira, Hiroko ; Sasaki, Masaru
Publisher:	Bonn : IZA
Subject:	experiment \| search model \| ambiguity \| reservation wage \| Experiment \| Suchtheorie \| Search theory \| Anspruchslohn \| Reservation wage \| Arbeitsuche \| Job search \| Entscheidung unter Unsicherheit \| Decision under uncertainty