AMU - Aix Marseille Université (Aix-Marseille Université
Jardins du Pharo
58 Boulevard Charles Livon
13284 Marseille cedex 7 - France)
Abstract : We analyze a sequential decision making process, in which at each step the decision is made in two stages. In the first 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.
Juan-Enrique Martínez-Legaz, Antoine Soubeyran. Convergence in a sequential two stage decision making process. Bull. Iranian Math. Soc, 2016, 42 (7), pp.25 - 29. ⟨hal-01690175⟩