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An Option Value Problem from Seinfeld [Avinash Dixit, 2011] [pdf] (princeton.edu)
3 points by dsr3 1300 days ago
1 comments

Thank 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.