| Abstract: | This paper develops a general model that can be used to determine the value of sequential forecasts. The model is used (1) to examine the interacting effects of strategies for coping with environmental uncertainty, and (2) to explore the relationship between the theories of sequential choice and quasi-option value. The framework presented bridges these two schools of thought and provides a tool for evaluating one time (e.g., climate change) or repetitive (e.g., pollution) forecasts of environmental damage. |
