A theory of search with partial stopping
Abstract
This thesis extends the earlier work in expected utility maximizing search by introducing the possibility of "partial stopping", where the agent may elect to sell a portion of an asset at one price while continuing to search for other prices at which to transact the remainder of his business. A stochastic dynamic programming model is developed and several results are established for the T period case. A two period version of the model is considered in depth. This simpler problem is shown to yield results analogous to many of the standard "all or nothing" search models. However, the partial stopping model can lead to a supply curve with decreasing regions as well as multiple discontinuities. Partly as a result of this, the extension to the multiperiod case is not as straightforward as in the traditional model.
Degree
Ph.D.
Advisors
Foster, Purdue University.
Subject Area
Economic theory
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