A Multi-Attribute Extension of the Secretary Problem: Theory and Experiments (Preprint)
Abstract
We present a generalization of a class of sequential search problems with ordinal ranks ("secretary" problems) in which applicants are characterized by multiple attributes that are evaluated independently. We then present a procedure for numerically computing the optimal search policy and test it in two experiments with incentive-compatible payoffs. With payoffs dependent on the absolute ranks of the attributes, we test the optimal search model with both symmetric (Experiment 1) and asymmetric (Experiment 2) search problems. In both experiments we find that, relative to the optimal search policy, subjects stop the search too early. Our results show that this bias is largely driven by a propensity to stop prematurely on applicants of intermediate (relative) quality.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 28, 2004
- Accession Number
- ADA638196
Entities
People
- Amnon Rapoport
- J. N. Bearden
- Ryan O. Murphy
Organizations
- University of Arizona