Flexibility and adjustment to information in sequential decision problems. A systematic approach (Q1189541): Difference between revisions

A problem of intertemporal modelling with regard to flexibility and adjustment to information, what lately has gained importance, and its application to the economy is analysed. The author makes an attempt to unify various approaches to tackle the situations when the relations between present decisions and future well-being of the economic agent are unknown. Thus, sequential decision problems arise, when an agent (a) is aware that present decisions effect his future well-being, (b) is uncertain about the precise nature of the relation the present and the future, (c) step by step, before taking the subsequent decision, receives some additional information about these relations. The unquestionable advantage of the book is the systematic treatment of decision problems with irreversibility, uncertainty and learning.