Week 6 Reading

Optimal Static Decisions

Draft Material

This content is under development and subject to change.

Assignment

No formal discussion this week (exam week).

As preparation for Wednesday’s lecture on Optimal Static Decisions, read the first few pages of van Dantzig (1956). Focus on understanding the problem setup: how van Dantzig frames the trade-off between dike construction costs and expected flood damages.

References

van Dantzig, D. (1956). Economic Decision Problems for Flood Prevention. Econometrica, 24(3), 276–287. https://doi.org/10.2307/1911632