TY - JOUR
T1 - Changing a decision taken under incomplete information during the process of execution
AU - Epstein, Gil S.
PY - 1996/3
Y1 - 1996/3
N2 - 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.
AB - 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.
KW - Decisions
KW - Information
KW - Uncertainty
UR - http://www.scopus.com/inward/record.url?scp=0030101125&partnerID=8YFLogxK
U2 - 10.1016/0167-2681(95)00066-6
DO - 10.1016/0167-2681(95)00066-6
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SN - 0167-2681
VL - 29
SP - 323
EP - 329
JO - Journal of Economic Behavior and Organization
JF - Journal of Economic Behavior and Organization
IS - 2
ER -