Search and active learning with correlated information:Empirical evidence from Mid-Atlantic clam fishermen

This paper examines search with active learning and correlated information. We firstdevelop a simple model to show how correlation affects the decision to acquire information.A unique data set on fishing site choice by mid-Atlantic clam fishermen is used to test themodel predictions. Results find that clam fishermen search new sites when the catch atfamiliar sites declines, i.e., when the opportunity cost of gathering information is low, butalso when catch at familiar sites is on the rise. Search following a catch decline occursat spatially distant sites whereas search following a catch increase occurs at nearby sites.Correlated learning is crucial for explaining the site choice patterns in our data. Theseresults provide new insights that may extend to a variety of economic search problems wherecorrelated learning is important.[...]