Changing a decision taken under incomplete information during the process of execution

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5 Scopus citations

Abstract

When making decisions in a situation of uncertainty such as investments, R and D, pricing etc., there is always the possibility of choosing the wrong action. This study deals with a case where decisions are made under uncertain conditions. While implementing the decision, we may receive information about the unknown and update our expectations. Changing the decision while carrying it out is costly. In this study we show that there are sufficient conditions, at the time of making the first decision, to realize that one will never want to change it. Some of these conditions depend only on the distribution of the random variable and do not depend on the cost function.

Original languageEnglish
Pages (from-to)323-329
Number of pages7
JournalJournal of Economic Behavior and Organization
Volume29
Issue number2
DOIs
StatePublished - Mar 1996

Keywords

  • Decisions
  • Information
  • Uncertainty

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