Author/Authors :
-، - نويسنده Departament
d'Economia i d'Historia Economica, Universitat Autonoma de
Barcelona, 08193 Bellaterra, and Barcelona Graduate School of Mathematics (BGSMath), BARCELONA, Martinez-Legaz, J.-E. , -، - نويسنده Aix-Marseille University (Aix-Marseille School of Economics) CNRS & EHESS, Chateau Lafarge, route des Milles, 13290 Les Milles, France. Soubeyran, A.
Abstract :
We analyze a sequential decision making process, in which at each stepthe decision is made in two stages. In the first stage a partially optimalaction is chosen, which allows the decision maker to learn how to improveit under the new environment. We show how inertia (cost of changing)may lead the process to converge to a routine where no further changesare made. We illustrate our scheme with some economic models.
