Search Theory

Filed Under »
Dictionary Says

Definition of 'Search Theory'

A study of buyers and sellers who cannot instantly find a commerce partner. Search theory specifically seeks the optimal strategy for those choosing from various opportunities, assuming that there is a cost related to indecision. In other words, search theory attempts to find the optimal balance between the cost of a delayed decision and the value of trying again.
Investopedia Says

Investopedia explains 'Search Theory'

Search theory has been influential across the field of economics. It has been used in labor economics to study unemployment caused by workers seeking more desirable jobs, and it has also been used to analyze purchasing decisions. In both instances, the desirability of a particular product or occupation is dependent on the perceived value of the alternatives available minus the undesirability of the hunt to find them.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Strategic Buyer

    A type of buyer ...

  2. Inward Investment

    The opposite of ...

  3. Cash Market

    The marketplace ...

  4. Dollar Bear

    An investor or ...

  5. House Money Effect

    The tendency for ...

  6. In The Penalty Box

    A phrase ...

  7. Passive Loss

    A financial loss ...

  8. Golden Geese

    A source of lots ...

  9. Overreaction

    A market ...

  10. Behavioral Finance

    A field of ...

Articles Of Interest

  1. Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.

  2. How To Develop A Trading Brain

    The fundamental role of trader psychology tends to be underestimated, with too much emphasis placed on the technical side.

  3. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.

  4. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.

  5. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.

  6. Removing The Barriers To Successful Investing

    Learn how to stop using emotion and bad habits to make your stock picks.

  7. Investors Intelligence Sentiment Index

    This indicator can give a overall sense of bull and bear forces - learn what it is and how it's constructed.

  8. Trade On Support For The Best Exit Strategy

    Find your sound exit strategy based on support and resistance levels, while understanding the psychology behind them.

  9. 4 Signs You're Addicted To Investing

    Compulsive trading will ratchet up your transaction costs, stress level and time spent away from the important things in life.

  10. Tips For Avoiding Excessive Trading

    Learn to trade smart instead of gambling with your money.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center