Effects of competition in a secretary problem

Daniel Cownden*, David Steinsaltz

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

In a novel multiplayer extension of the famous secretary problem, multiple players seek to employ secretaries from a common labour pool. Secretaries do not accept being put on hold, always accept job offers immediately, and leave the labour pool once rejected by a single player. All players have an identical preference for secretaries, and all players seek to optimize the probability of obtaining the best of all n secretaries. We find that in the Nash equilibrium, as the number, N, of players searching the labour pool grows, the optimal strategy converges to a simple function of N. For the two-player case we also compute how much players can gain through cooperation and how the optimal strategy changes under a payoff structure that promotes spite.

Original languageEnglish
Pages (from-to)104-113
Number of pages10
JournalMathematical Methods of Operations Research
Volume62
Issue number1
Early online date21 Jan 2014
DOIs
Publication statusPublished - Jan 2014

Keywords

  • Secretary problem
  • Game theory
  • Sequential decision analysis

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