1
Departament d'Economia i d'Historia Economica, Universitat Autonoma de Barcelona, 08193 Bellaterra, and Barcelona Graduate School of Mathematics (BGSMath), BARCELONA, Spain.
2
Aix-Marseille University (Aix-Marseille School of Economics) CNRS & EHESS, Chateau Lafarge, route des Milles, 13290 Les Milles, France.
Abstract
We analyze a sequential decision making process, in which at each step the decision is made in two stages. In the rst stage a partially optimal action is chosen, which allows the decision maker to learn how to improve it under the new environment. We show how inertia (cost of changing) may lead the process to converge to a routine where no further changes are made. We illustrate our scheme with some economic models.
Martinez-Legaz, J. & Soubeyran, A. (2016). Convergence in a sequential two stages decision making process. Bulletin of the Iranian Mathematical Society, 42(Issue 7 (Special Issue)), 25-29.
MLA
Martinez-Legaz, J., & Soubeyran, A. "Convergence in a sequential two stages decision making process", Bulletin of the Iranian Mathematical Society, 42, Issue 7 (Special Issue), 2016, 25-29.
HARVARD
Martinez-Legaz J., Soubeyran A. (2016). 'Convergence in a sequential two stages decision making process', Bulletin of the Iranian Mathematical Society, 42(Issue 7 (Special Issue)), pp. 25-29.
CHICAGO
J. Martinez-Legaz & A. Soubeyran, "Convergence in a sequential two stages decision making process," Bulletin of the Iranian Mathematical Society, 42 Issue 7 (Special Issue) (2016): 25-29,
VANCOUVER
Martinez-Legaz J., Soubeyran A. Convergence in a sequential two stages decision making process. BIMS. 2016;42(Issue 7 (Special Issue)):25-29.
