Optimal Selling When the Price Distribution is Unknown.

Abstract

This paper reconsiders the classical model for selling an asset in which offers come in daily and a decision must then be made as to whether or not to sell. For each day the item remains unsold a continuation (or maintenance cost) c is incurred. The successive offers are assumed to be independent and identically distributed random variables having an unknown distribution F. The model is considered both in the case where once an offer is rejected it may not be recalled at a later time, and in the case where such recall of previous offers is allowed.

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Document Details

Document Type
Technical Report
Publication Date
Sep 06, 1977
Accession Number
ADA044897

Entities

People

  • C. Derman
  • G. J. Lieberman
  • S. Ross

Organizations

  • Stanford University

Tags

DTIC Thesaurus Topics

  • California
  • Contracts
  • Equations
  • Maintenance
  • Maintenance Costs
  • New York
  • Operations Research
  • Probability
  • Probability Distributions
  • Random Variables
  • Security
  • Universities

Fields of Study

  • Mathematics

Readers

  • Educational Psychology
  • Industrial Economics
  • Statistical inference.