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Decision theory 1 Optimal strategy 1 Real estate 1 Two-envelope problem 1 Uncertainty 1
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Free 1
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Book / Working Paper 1
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Undetermined 1
Author
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Egozcue, Martin 1 Fuentes García, Luis 1 Zitikis, Ricardas 1
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Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München 1
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MPRA Paper 1
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RePEc 1
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An optimal strategy for maximizing the expected real-estate selling price: accept or reject an offer?
Egozcue, Martin; Fuentes García, Luis; Zitikis, Ricardas - Volkswirtschaftliche Fakultät, … - 2012
Motivated by a real-life situation, we put forward a model and then derive an optimal strategy that maximizes the expected real-estate selling price when one of the only two remaining buyers has already made an offer but the other one is yet to make. Since the seller is not sure whether the...
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