Stop Waiting Problem: Decision Rule with Ψ function and Application with Share Prices

Wolfgang Kohn

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: In this paper the stop-waiting strategy of Franz Bruss is set into a simple probabilistic framework and applied to the apple share prices from 1984 to 2013. Within the probabilistic framework a heuristic and a mathematical decision rule using the $\Psi$ function is developed. The results are in line with Bruss's theory. We apply the stop-waiting strategy to the Apple share prices and compare the results with a simple start-end and chart technique strategy.

Keywords: Optimal Stopping Problem; Mathematical Tools; Share Market (search for similar items in EconPapers)
JEL-codes: C65 E47 G17 (search for similar items in EconPapers)
Date: 2014-03-04
New Economics Papers: this item is included in nep-mac
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:93096

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