Effect of Alternative-set Information on Sequential Observation and Selection Behaviors

Based on the completely rational decision-maker, it implies that no influence of alternative-set information on search behavior for the optimal search model of sequential observation and selection. However, in the real life the search number would be regular verify because of the uncertainty perception of alternative-set information for decision-maker. By the method of laboratory experiment, and based on the bounded rational decision-maker, we found that people tend to more search under the situation of knowing smaller alternative-set than that knowing bigger one. When we know alternative-set is a finite situation, will tend to more search than that an infinite scenario. However, when we feel the situation along with a higher uncertainty degree of alternative-set information, there is not a significant difference of search number than that a lower one, and this means it is far beyond our ability of information processing and probabilistic calculating.