Microtheory Seminar Series. "Sequential search with flexible information (with Pavel Ilinov, Andrei Matveenko, Salil Sharma & Mark Voorneveld)"
Published: 12 September 2024
22 October 2024. Dr Elias Tsakas, Maastricht University
Dr Elias Tsakas, Maastricht University
"Sequential search with flexible information (with Pavel Ilinov, Andrei Matveenko, Salil Sharma & Mark Voorneveld)"
Tuesday, 22 October 2024. 16:00-17:30
Room 223, Advanced Research Centre (ARC)
Abstract
We consider a model of sequential search in which a decision-maker (DM) has to choose one alternative from a fixed set. All available alternatives are iid random variables and ex-ante unknown to the DM. Before making a choice, contrary to the standard search literature, we allow the DM to decide how much and what kind of information to acquire about each alternative, e.g., design different job market interviews for candidates with different arrival ranks. We find that optimal interviews have an intuitive property -- the first arriving candidates are treated harshly, and their interviews are harder to pass, while later candidates' interviews are easier to pass. We compare the unconditional probabilities of choice and study the discrimination the order of inspection can cause. We argue that discrimination is sensitive to the functional form of the cost of learning. We consider several extensions, and we show that it may be optimal for the DM to interview an inferior candidate first and that a naive affirmative action policy can increase discrimination.
Bio
Elias Tsakas, Ph.D., is an Associate Professor in the Department of Microeconomics and Public Economics at Maastricht University, in The Netherlands. He holds a PhD in Economics from the University of Gothenburg, Sweden. He has been a Marie Curie Fellow, a visiting scholar at UC Berkeley, and a visiting Professor at UC Davis. He is also serving as an Associate Editor at the Journal of Economic Behavior and Organization, and as Coordinating Editor in Theory and Decision. His research has been published in journals such as Theoretical Economics, Journal of Economic Theory, Games and Economic Behavior and Journal of Public Economics, among else.
For further information, please contact business-seminar-series@glasgow.ac.uk.
We foster a positive and productive environment for seminars through our Code of conduct.
First published: 12 September 2024