Identify basic elements of a real-estate investor decision

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Question: 1. Imagine the difficulties of an employer whose decision context is choosing a new employee from a set of applicants whom he will interview. What do you think the employer's objectives should be? Identify the employer's specific decisions to make and uncertainties, and describe the relevant uncertain events. How does the problem change if the employer has to decide whether to make an offer on the spot after each interview?

2. Identify the basic elements of a real-estate investor's decision situation. What are the investor's objectives? Is the situation dynamic, that is, are there sequential decisions? What are some of the uncertainties that the investor faces? What are the crucial tradeoffs? What role does the time value of money play for this investor?

Reference no: EM131523602


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