Campus Units
Economics
Document Type
Article
Publication Version
Submitted Manuscript
Publication Date
6-2008
Journal or Book Title
Journal of Economic Dynamics and Control
Volume
32
Issue
6
First Page or Article ID Number
1921
Last Page
1948
DOI
10.1016/j.jedc.2007.07.003
Abstract
This paper examines search with active learning and correlated information. We first develop a simple model to show how correlation affects the decision to acquire information. A unique data set on fishing site choice by mid-Atlantic clam fishermen is used to test the model predictions. Results find that clam fishermen search new sites when the catch at familiar sites declines, i.e., when the opportunity cost of gathering information is low, and also when catch at familiar sites is on the rise. Search following a catch decline occurs at spatially distant sites whereas search following a catch increase occurs at nearby sites. Correlated learning is crucial for explaining the site choice patterns in our data. These results provide new insights that may extend to a variety of economic search problems where correlated learning is important.
JEL Classification
D8, C4, Q2
Copyright Owner
Elsevier B.V.
Copyright Date
2007
Language
en
File Format
application/pdf
Recommended Citation
Marcoul, Philippe and Weninger, Quinn, "Search and active learning with correlated information: Empirical evidence from mid-Atlantic clam fishermen" (2008). Economics Publications. 474.
https://lib.dr.iastate.edu/econ_las_pubs/474
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, Econometrics Commons
Comments
This working paper was published in Journal of Economic Dynamics and Control 32 (2008): 1921–1948, doi:10.1016/j.jedc.2007.07.003. Posted with permission.