The dynamic problem of choosing subsets of objects or “toolkits” when their value distribution is unknown is a multi-armed bandit problem with non-independent arms. Accordingly, except for very simple specifications, this problem cannot (practically) be solved, either analytically or numerically. Decision makers facing this problem must resort to decision heuristics, employing past experience and, perhaps, what they know about the problem. This paper focuses on prior-free heuristics, the simpler and more naive end of the spectrum of heuristics where the decision maker is guided entirely by past experience. Prior-free heuristics can take a variety of forms, depending on the decision maker’s unit of analysis: tools or toolkits. We examine and compare different prior-free heuristics using both analytical methods and simulations. In a companion paper, Francetich and Kreps (2019), we examine heuristics in which the decision maker engages in Bayesian updating of her prior beliefs about the environment.
-
Faculty
- Academic Areas
- Awards & Honors
- Seminars
-
Conferences
- Accounting Summer Camp
- Big-Data Initiative in Intl. Macro-Finance
- California Econometrics Conference
- California Quantitative Marketing PhD Conference
- California School Conference
- China India Insights Conference
- Homo economicus, Evolving
-
Initiative on Business and Environmental Sustainability
- Political Economics (2023–24)
- Scaling Geologic Storage of CO2 (2023–24)
- A Resilient Pacific: Building Connections, Envisioning Solutions
- Adaptation and Innovation
- Changing Climate
- Civil Society
- Climate Impact Summit
- Climate Science
- Corporate Carbon Disclosures
- Earth’s Seafloor
- Environmental Justice
- Finance
- Marketing
- Operations and Information Technology
- Organizations
- Sustainability Reporting and Control
- Taking the Pulse of the Planet
- Urban Infrastructure
- Watershed Restoration
- Junior Faculty Workshop on Financial Regulation and Banking
- Ken Singleton Celebration
- Marketing Camp
- Quantitative Marketing PhD Alumni Conference
- Rising Scholars Conference
- Theory and Inference in Accounting Research
- Voices
- Publications
- Books
- Working Papers
- Case Studies
-
Research Labs & Initiatives
- Cities, Housing & Society Lab
- Corporate Governance Research Initiative
- Corporations and Society Initiative
- Golub Capital Social Impact Lab
- Policy and Innovation Initiative
- Rapid Decarbonization Initiative
- Stanford Latino Entrepreneurship Initiative
- Value Chain Innovation Initiative
- Venture Capital Initiative
- Behavioral Lab
- Data, Analytics & Research Computing