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Theory and Decision

, Volume 77, Issue 3, pp 297–311 | Cite as

Recall searching with and without recall

  • Daniela Di Cagno
  • Tibor NeugebauerEmail author
  • Carlos Rodriguez-Palmero
  • Abdolkarim Sadrieh
Article

Abstract

We revisit the sequential search problem by Hey (J Econ Behav Organ 8:137–144, 1987). In a 2 \(\times \) 2 factorial design, varying fixed and random cost treatments with and without recall, we address open research questions that were originally stated by Hey (1987). Our results provide clear evidence for Hey’s (1987) conjecture that recall negatively affects performance in sequential search. With experience, however, search behavior with and without recall converges toward the optimal reservation rule. We further find that the utilization of optimal reservation rules is independent from the stochastic nature of the search cost.

Keywords

Experiments Search Stopping rule Recall effect 

JEL Classification

C90 D53 D92 G02 G11 G12 

Notes

Acknowledgments

Financial support by the University of Luxembourg is acknowledged (F2R-LSF-POL-09BCCM). (F2R-LSF-POL-09BCCM), and by the Fonds National de Recherche Luxembourg (F2R-LSF-PMA-13SYSB). This research was inspired by John Hey’s excellent research and by the insightful discussions with him in our many years of academic interaction. We also acknowledge helpful comments by the editor, two referees, and participants at the Durham workshop in honor of John Hey.

Supplementary material

11238_2014_9444_MOESM1_ESM.docx (39 kb)
Supplementary material 1 (docx 38 KB)

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Daniela Di Cagno
    • 1
  • Tibor Neugebauer
    • 2
    • 3
    Email author
  • Carlos Rodriguez-Palmero
    • 4
  • Abdolkarim Sadrieh
    • 5
  1. 1.Department of Economics and FinanceLUISS Guido Carli of RomeRomeItaly
  2. 2.Luxembourg School of Finance (LSF)University of LuxembourgLuxembourgLuxembourg
  3. 3.Laboratory of Experimental EconomicsUJI Castellon, & EBEL, University of CaliforniaSanta BarbaraUSA
  4. 4.Department of Applied EconomicsUniversity of ValladolidValladolidSpain
  5. 5.Department of EconomicsUniversity of MagdeburgMagdeburgGermany

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