IJPAM: Volume 72, No. 1 (2011)

SEARCH AVERSION

Debora Di Caprio$^1$, Francisco J. Santos-Arteaga$^2$
$^1$Department of Mathematics and Statistics
York University
4700 Keele Street, Toronto, M3J 1P3, CANADA
$^2$GRINEI
Universidad Complutense de Madrid
Campus de Somosaguas, 28223, Pozuelo, SPAIN


Abstract. The current paper defines the optimal sequential information gathering structure of rational utility maximizer decision makers and illustrates numerically how their incentives to gather information among different goods decrease in their degree of risk aversion.

Received: June 5, 2011

AMS Subject Classification: 90B50, 91B06

Key Words and Phrases: search aversion, risk aversion, multi-attribute sequential search, optimal information gathering

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Source: International Journal of Pure and Applied Mathematics
ISSN printed version: 1311-8080
ISSN on-line version: 1314-3395
Year: 2011
Volume: 72
Issue: 1