Behaviorally consistent optimal stopping rules

DOI10.1016/0022-0531(90)90024-EMaRDI QIDQ2277349zbMATH OpenWikidataFDO

Authors Edi Karni, Zvi Safra

Publication date 1990

Published in Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/0022-0531(90)90024-E

zbMATH Keywords

behaviorally consistent optimal stopping rulesbounded sequential searchreservation level property

Mathematics Subject Classification ID

Stopping times; optimal stopping problems; gambling theory (60G40) Utility theory (91B16)

Review text

The authors characterize behaviorally consistent optimal stopping rules in a bounded sequential search model without recalls for searchers whose preferences are nonlinear. They show that the preferences are quasiconvex then the optimal stopping rule has the reservation level property, and that if the preferences are quasiconcave then the optimal behavior involves the use of mixed strategies.

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Cited in

(13)

• Existence and dynamic consistency of Nash equilibrium with non-expected utility preferences
• Unbounded behaviorally consistent stopping rules
• On the nonexistence of Blackwell's theorem-type results with general preference relations
• Dynamic consistency and ambiguity: a reappraisal
• Flexibility of choice versus reduction of ambiguity
• Optimal stopping with behaviorally biased agents: the role of loss aversion and changing reference points
• Search, choice, and revealed preference
• Dynamic consistency in incomplete information games under ambiguity
• Uniformly best invariant stopping rules
• A decision-theoretic model of asset-price underreaction and overreaction to dividend news
• Cautious stochastic choice, optimal stopping and deliberate randomization
• Optimal stopping in a dynamic salience model
• Investment behavior under ambiguity: the case of pessimistic decision makers

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