An experimental study of the influence of risk attitude on decision making in asset selling problem with search cost

Abstract

This paper deals with an asset selling problem (ASP) where the seller should make a decision on whether to accept or to reject appearing offer by paying a search cost within given deadline. As to the possibility of recall for the once rejected offer, ASP is usually categorized as the two types of model, model with no recall and recall: once rejected offer disappears forever in the former, while it can be recalled by a certain probability or paying some reserving costs in the latter. We develop an experimental game by Java for these two types of ASP in order to investigate the decision patterns as well as the influence of decision maker’s risk attitude on the decision making in ASP. Some useful analytic results are provided in the paper. © 2015 ICIC International.