Noisy decisions and the perils of flexibility

Posted on Mon 18 March 2024 in Research • Tagged with dynamic programming, noisy choices

Consider the following: (i) sequential setting: a person who sequentially engages in costly search among alternatives and upon stopping receives the highest value seen so far, and (ii) parallel setting: a person who ex-ante decides the number of alternatives to examine, and then selects the highest value among them.

Obviously …


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