A New Model for Investment Decision Engineering
| Autor: | Xiaoyong Zhang, Linjie He |
|---|---|
| Rok vydání: | 2011 |
| Předmět: |
Actuarial science
Decision Engineering Decision engineering Decision tree Learning Behavior ComputerApplications_COMPUTERSINOTHERSYSTEMS Investment Decision Model Investment (macroeconomics) Microeconomics Investor profile Return on investment Economics Decision model Optimal decision Decision analysis |
| Zdroj: | Systems Engineering Procedia. 2:105-113 |
| ISSN: | 2211-3819 |
| DOI: | 10.1016/j.sepro.2011.10.013 |
| Popis: | On the basis of Brennan's (1998) dynamic investment decision model and engineering management, this paper builds an investor's learning-decision model, allowing for the uncertainty of the expected return and the investor's learning process. In our model, the variable of learning cost is added, which modifies the condition for decision of the investor, and assumes that the investment payoff cannot be observed, if an investor does not pay the learning cost. With the above conditions, this paper derives the optimal result of a three-period decision model on the basis of an investor's learning behavior and decision engineering. The empirical evidence verifies the result of our model in this paper. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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