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[null,"Broad versus Narrow Search Strategies-- Spreadsheet Example"]
[null,null,"for Figure 14.3 in Kuhn, P. Personnel Economics",{"$nulls":3},"Baseline"]
[{"$nulls":6},"Values"]
[null,null,"Group A's expected net productvity (uA):",null,null,10,10]
[null,null,"Group B's expected net productvity (uB):",null,null,8,8]
[null,null,"Standard deviation of productivity (σ):",null,null,2.5,2.5]
[null,null,"Application processing cost (c):",null,null,0.1,0.1]
[null,null,"Number of applicants in each group (N):",null,null,10,10]
[]
[null,"Narrow Search Strategy (consider only the A's): "]
[null,null,"Expected Net Productivity of the Best Applicant:  ",null,null,{"$f":"F5+D22*F7*LN(F9)","v":{"v":14.48829557893951,"d":"14.488"}}]
[null,null,"Total processing costs (cN):",null,null,{"$f":"F8*F9","v":{"v":1,"d":"1.000"}}]
[null,null,"Expected Profits:  ",null,null,{"$f":"F12-F13","v":{"v":13.48829557893951,"d":"13.488"}}]
[]
[null,"Broad Search Strategy (consider both the A's and the B's):"]
[]
[null,null,"Expected Net Productivity of the Best Applicant:  ",null,null,{"$f":"F5+D23+D22*F7*LN(F9)","v":{"v":15.085396901966895,"d":"15.085"}}]
[null,null,"Total processing costs (cN):",null,null,{"$f":"2*F8*F9","v":{"v":2,"d":"2.000"}}]
[null,null,"Expected Profits:  ",null,null,{"$f":"F18-F19","v":{"v":13.085396901966895,"d":"13.085"}}]
[]
[null,null,"k:",{"$f":"SQRT(6)/PI()","v":{"v":0.779696801233676,"d":"0.780"}}]
[null,null,"Δ:",{"$f":"D22*F7*LN(1+EXP((F6-F5)/(D22*F7)))","v":{"v":0.5971013230273852,"d":"0.597"}}]
[]
[null,"Lessons:"]
[null,"The expected productivity of the best candidate is always higher in the broad than the narrow strategy, because you have more chances to get a 'star'."]
[null,"In the baseline case, though, this extra prod isn't enough to compensate for the higher cost of doubling the number of interviews"]
[null,"However,if you cut application processing costs to .05, that is no longer the case-- now you should interview the B's as well, even though they are 20% less productive on average"]
[null,"Putting c back to baseline, then raising std deviation of applicant quality (to about 3.4 or more) has the same effect--it's again optimal to search broadly. "]
[null,"Reducing the prod of the B group has the obvious effect of making narrow search more likely."]
[null,"Reducing the number of applications that are available makes the broad search strategy relatively more profitable.  "]
[]
[null,"Notes:  ","k and Δ are quantities needed to calculate the expected net productivity of the best applicant "]
[null,null,"using the formulas in online Appendix 1 to Kuhn and Shen (2013)"]

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