Optimal expected rank in a two-sided secretary problem

Optimal expected rank in a two-sided secretary problem

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Article ID: iaor20083402
Country: United States
Volume: 55
Issue: 5
Start Page Number: 921
End Page Number: 931
Publication Date: Sep 2007
Journal: Operations Research
Authors: , ,
Keywords: game theory
Abstract:

In a two-sided version of the famous secretary problem, employers search for a secretary at the same time as secretaries search for an employer. Nobody accepts being put on hold, and nobody is willing to take part in more than N interviews. Preferences are independent, and agents seek to optimize the expected rank of the partner they obtain among the N potential partners. We find that in any subgame perfect equilibrium, the expected rank grows as the square root of N (whereas it tends to a constant in the original secretary problem). We also compute how much agents can gain by cooperation.

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