| Article ID: | iaor1988724 |
| Country: | Germany |
| Volume: | 20 |
| Start Page Number: | 127 |
| End Page Number: | 134 |
| Publication Date: | Mar 1989 |
| Journal: | Optimization |
| Authors: | Benzing H., Kalin D., Theodorescu R. |
| Keywords: | decision theory |
Several decision problems such as bandit problems, stopping problems, and portfolio problems, can be considered as special sequential two-action Markov decision models. In this paper such models are studied; a stopping rule is given, and monotonicity properties of the maximum expected total discounted reward and of an optimal policy are established. The theory is illustrated by two examples.