Seminar

Department of Systems Engineering and Engineering Management

The Chinese University of Hong Kong

Title: Patience and the Quality of Information in Entry Problems

Speaker: Prof. Ehud Lehrer, Tel Aviv University

Abstract: In a dynamic entry problem a Bayesian decision maker (DM) faces an unknown payoff-relevant state of nature. At every period he decides whether to enter and collect a payoff or wait. In case he waits, the DM expects to receive a new partial information about the prevailing state. This information is given by a noisy channel whose stochastic structure is known.  We focus on the impact of the quality of the information received and the optimal policy. In particular, we compare between different information structure and their impact on the cutoff strategies. The multiple-player (strategic) model and the relation to asset pricing are also discussed in the talk. This talk is based on a joint work with Tao Wang.



Biography: Prof. Ehud Lehrer is Chaired Professor of Department of Statistics and Operations Research at Tel Aviv University. His research interests include game theory, decision theory, economic theory and probability. He is now Charter member of the Game Theory Society, Fellow of the Econometric Society, Fellow of the Society for the Advancement of Economic Theory (SAET), and Editor of Games and Economic Behavior.