Decision and Strategies in a Sequential Search Experiment

The strategy method is becoming an important tool in experimental methodology. This study examines how well this method works in an individual decision experiment. Subjects are faced with a sequential search problem. After extensive practice solving the problem and formulating strategies, they play 20 periods for money. In each period the subjects first make decisions by hand, and after that their strategy operates on the same sequence of bids. Each period only one of the results is paid out (randomly determined). After each period subjects can change their strategy. This method makes a direct comparison between strategies and decisions possible. <BR><BR>