Abstract.
We consider a model of sequential search in which an agent (the employer) has to choose one alternative (a candidate) from a finite set. A key feature of our model is that the employer is not restricted to specific forms of informa- tion acquisition, i.e., she is free to endogenously choose any interview for each candidate that arrives. Our main characterization result shows that the em- ployer’s unique optimal strategy is to offer a gradually easier interview to later candidates. Further, we study whether the candidates are treated equally in terms of the probability of being hired. We show that although the discrimi- nation created by the order of consideration depends on the cost structure, for large numbers of candidates the first one will be generically favored. Finally, we characterize a wide range of cases where the employer prefers to start by interviewing ex ante worse candidates.
