Variability and the Duration of Search.

In a sequential search model without learning, a proportionate mean-preserving spread of the offer distribution has two opposing effects on the expected duration of search: it raises the likelihood that any particular reservation value is exceeded, but also raises the reservation value itself. The net effect depends upon whether the sum of implicit and explicit search costs is positive, zero, or negative. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.