A SIMPLE-MODEL OF EQUILIBRIUM IN SEARCH PROCEDURES

The paper presents a simple game-theoretic model in which players deci de on search procedures For a prize located in one of a set of labeled boxes. The prize is awarded to the player who Finds it first. A playe r can decide on the number of (costly) search units he employs and on the order in which he conducts the search. It is shown that in equilib rium, the players employ an equal number of search units and conduct a completely random search. The paper demonstrates that the search proc edure is intrinsically inefficient. (C) 1997 Academic Press.