Online Seminar | Catastrophes, delays and learning
03.03.2022
03.03.2022
16:00 - 18:00
online
GoToWebinar
March 3rd, 2022 - 4 PMÂ
Prof. Matti LiskiÂ
Aalto University School of Business
introduced by
Prof. Sergio Vergalli
Fondazione Eni Enrico Mattei, University of Brescia, IAERE
To participate please registere hereÂ
How to plan for catastrophes that may be under way? In a simple but general model of experimentation, a decision-maker chooses a flow variable contributing to a stock that may trigger a catastrophe at each untried level. Once triggered, the catastrophe itself occurs only after a stochastic delay. Consequently, the rhythm of past experimentations determines the arrival of information. This has strong implications for policies in situations where the planner inherits a history of experiments, like climate change and pandemic crisis. The structure encompasses canonical approaches in the literature.