Cover: The Economics of Information and Optimal Stopping Rules.

The Economics of Information and Optimal Stopping Rules.

Published 1964

by John McCall

Purchase Print Copy

 Format Price
Add to Cart Paperback37 pages $20.00

A presentation of methods for measuring the economic value of information in two different stopping environments. The decision process in the first environment is repetitive, while the associated probability mechanism is unknown. Some recent results of statistical decision theory are used to assess the value of collecting more information. Decision processes comprising the second class of stopping problems have a terminating structure. The decisionmaker is assumed to know the probability law that generates investment opportunities, but each successive investment opportunity entails additional investment costs. Dynamic programming determines when the best investment opportunity occurs. 37 pp. Bibliog.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.