We introduce a simple new model of sequential search among finitely many options that fits many economic applications. Each payoff is the sum of a random “known factor” and a “hidden factor”, learned at cost. Weitzman (1979) solved the ex post Pandora's box problem, given known factors....

We explore costly sequential search among finitely many risky options, and an outside option. Payoffs are the sum of a known and hidden random factor.(a) We resolve a long open question about how riskier payoffs impact search duration: expected search time is higher for more dispersed...

This note uses monotone methods to derive two sets of comparative statics results for monetary directed search models. First, it characterizes the impact of a higher inflation rate or a higher cost of using credit on market outcomes, regardless of the choice of matching function. Second, the...

We develop a random-matching model to study the price dynamics of monies produced privately according to a time-consuming mining technology. We provide examples of mining technologies for which there exists a unique equilibrium where the value of money increases over time and reaches a steady...

We consider an oligopoly model in which consumers engage in sequential search based on partial product information and advertised prices. We derive a simple condition that fully summarizes consumers' shopping outcomes and use the condition to reformulate the pricing game among the sellers as a...

We develop a random-matching model to study the price dynamics of divisible monies produced privately by using a time-consuming mining technology. There exists a unique equilibrium where the value of money increases until it reaches a steady state. There is also a continuum of perfect-foresight...