Flexibility and Adjustment to Information in Sequential Deci ...

Armin Schmutzler

• 11 december 1991
• 9783540546450

Samenvatting:

1 The Importance of Irreversibility and Learning - Familiar 11 Bxamples Revisited 1. 3 Conclusions 30 2 The Role of Irreversibility and Learning in Sequential Decision Problems - Basic Concepts 33 2. 2 Economic Examples 37 2. 2 The Two-Period Model with Uncertainty 46 2. 2 An Example: Money Demand as Demand for Flexibility 61 2.



This work, adopting an economic theoretical stance, offers a systematic approach to sequential decision problems. The emphasis of the book is on the interplay between irreversibility, uncertainty and information. In particular, it demonstrates how flexibility considerations can be modelled in a general choice-theoretical framework. Examples drawn from capital and investment theory are included.