Policy Seminars

Speaker: Steven Lippman
UCLA Anderson School -- Policy Area

Sale of a Deteriorating Asset via Sequential Search

Date/Place/Time: Friday, September 25, 2009 at 1:30PM-2:15PM
UCLA Anderson Entrepreneurs Hall C303
We consider the sale of an asset via sequential search over a finite time horizon and analyze the problem in both the posted price and the reservation price regimes. The distinguishing feature of this search model is the fact that the asset deteriorates with the passage of time. Under mild conditions, we show that the seller's optimal posted price (and the seller's optimal reservation price) per remaining unit of the asset decreases as time passes.
Link to paper (if available): Click here (external site)