Optimal Product Lifecycle and Partial Information with Active Learning
During production processes there is an accumulation of uncertainty aboutproduction and its output. However, decision-makers can reduce uncertainty bytaking measuremens. The role of value of measurements is discussed in adynamic production framework where the number of measurements depends on theattitude of a decision-maker toward risk, the unit cost of a measurement andits impact on the uncertainty, and the level of production and its quality.A model describing the way of handling such information in an active learningframework is shown by considering the impact of future uncertainty on currentdecisions. The model is illustrated using given functional forms and anumerical example. It is shown how the production level and its quality areaffected by the unit price of a measurement. Copyright Kluwer Academic Publishers 2003
Volume (Year): 21 (2003)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://www.springerlink.com/link.asp?id=100248|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bouzaher, Aziz & Lakshminarayan, P. G. & Cabe, Richard & Carriquiry, Alicia L. & Gassman, Philip W. & Shogren, Jason F., 1993.
"Metamodels and Nonpoint Pollution Policy in Agriculture,"
Staff General Research Papers
531, Iowa State University, Department of Economics.
- Aziz Bouzaher & Richard Cabe & Alicia L. Carriquiry & Philip W. Gassman & P. G. Lakshminarayan & Jason F. Shogren, 1992. "Metamodels and Nonpoint Pollution Policy in Agriculture," Center for Agricultural and Rural Development (CARD) Publications 92-wp97, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Hess, James, 1982. "Risk and the gain from information," Journal of Economic Theory, Elsevier, vol. 27(1), pages 231-238, June.
- Sadeh, Arye & Griffin, Wade L., 1997. "Value of feedback in agricultural decisions," Agricultural Systems, Elsevier, vol. 53(2-3), pages 285-301.
- Amman, Hans M. & Kendrick, David A., 1994. "Active learning Monte Carlo results," Journal of Economic Dynamics and Control, Elsevier, vol. 18(1), pages 119-124, January.
- Gould, John P., 1974. "Risk, stochastic preference, and the value of information," Journal of Economic Theory, Elsevier, vol. 8(1), pages 64-84, May.
When requesting a correction, please mention this item's handle: RePEc:kap:compec:v:21:y:2003:i:1:p:125-136. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.