Comparative Study of Solutions to Sequential Observation and Selection Problem
Junling Li · Journal of Hebei University · 2008
The sequential observation and selection problem is a class decision task of dynamic decision process,which describes the searching information stage by stage,and the aim is to decide when to stop searching for the maximal payoff.The present rules solving SP are the cutoff rules,among them one solution is to choose the maximum value as the benchmark and then select the alternative larger than the benchmark.When people consider the assumption of decisions’ bounded rationality,it is possible to propose the suboptimal-benchmark.Obviously,decision payoff and search number is very different for these benchmarks.Additionally,we also analyze the decision rule based on specific events and changed benchmark rule.In brief,the paper compares and analyses the three rules of solving sequential observation and selection problem,and suggests the implications of the rules.