The best choice problem under ambiguity

B-Tier
Journal: Economic Theory
Year: 2013
Volume: 54
Issue: 1
Pages: 77-97

Authors (2)

Tatjana Chudjakow (not in RePEc) Frank Riedel (Universität Bielefeld)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We model and solve best choice problems in the multiple prior framework: An ambiguity averse decision maker aims to choose the best among a fixed number of applicants that appear sequentially in a random order. The agent faces ambiguity about the probability that a candidate—a relatively top applicant—is actually best among all applicants. We show that our model covers the classical secretary problem, but also other interesting classes of problems. We provide a closed form solution of the problem for time-consistent priors using backward induction. As in the classical case, the derived stopping strategy is simple. Ambiguity can lead to substantial differences to the classical threshold rule. Copyright Springer-Verlag 2013

Technical Details

RePEc Handle
repec:spr:joecth:v:54:y:2013:i:1:p:77-97
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29