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DETERMINING THE OPTIMAL NUMBER OF BID SOLICITATIONS 1
Author(s) -
Rados David L.
Publication year - 1972
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1972.tb00546.x
Subject(s) - simple (philosophy) , search cost , linear search , distribution (mathematics) , economics , computer science , microeconomics , econometrics , operations research , mathematics , algorithm , mathematical analysis , philosophy , epistemology
This paper analyzes three simple search models, in which a buyer with full knowledge of the distribution of market prices searches for a low price. He continues his search until the cost of further search exceeds the expected savings resulting from the further search. The implications of these models are also discussed.