Sequential Search with Planning (opens in new tab)
Sequential development of a new product or technology, or natural resource exploration, often progresses through ordered stages with uncertain rewards and requires costly (ex ante) planning to make future stages accessible. We model this process as an ordered Pandora's box problem where a decision-maker first chooses an initial scope, paying a cost that rises with the number of stages made accessible, and may later expand the scope at a marginal...
Read the original article