An Option Value Problem from Seinfeld [Avinash Dixit, 2011] [pdf]
1–2 of 2 posts
Re: An Option Value Problem from Seinfeld [Avinash Dixit, 2011] [pdf]
#2Thank you for sharing! I chuckled as I read this clever little piece. I didn't read carefully through the dynamic programming details, but in my view the framing of Elaine's predicament is correct: From her point of view, a man's "spongeworthiness" is indeed the present value of an option.