We consider a sequential problem of selling K identical assets over the finite time horizon with a fixed number of offers per time period and no recall of past offers. The objective is to find an optimal sequential procedure which maximizes the total expected revenue. In this paper, we derive an...

The process by which individuals learn from feedback when making recurrent choices among ambiguous alternatives is explored. We describe an experiment in which subjects solve a variant of the classic armed-bandit problem of dynamic decision theory, set in the context of airline choice. Subjects...

In the standard search problem there is an infinite pool of items whose distribution of values is known. A decision maker draws an item from the pool, observes its value, and decides whether to keep it or to draw another item. He can keep only one item, and he seeks the item with the largest...

This paper addresses a problem faced by the producer of a commodity for which futures are traded. The producer wishes to reduce his exposure to the random fluctuations in spot prices; however, the futures markets extend out for fewer time periods than the revenue stream that he wants to hedge....