On the Optimality of Myopic Policies in Sequential Decision Problems

Published Online:https://doi.org/10.1287/mnsc.21.5.550

A sufficient condition for the optimality of myopic policies is derived for a class of sequential decision problems. A necessary condition is also derived. The usefulness of the sufficient condition is illustrated in the context of a dynamic portfolio selection problem, a matched sampling problem, and a multi-item inventory model.

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