Cover: The Economics of Information and Optimal Stopping Rules.

The Economics of Information and Optimal Stopping Rules.

Published 1964

by John McCall

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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.

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