Optimal Stopping Theory

Optimal Stopping Theory is about determining the best time to take a particular action to maximize expected benefits or minimize costs. Imagine you're trying to decide when to stop searching for a better option, like choosing when to buy a house or accept a job offer, based on what you've seen so far. The theory provides strategies for making that decision based on probabilistic assessments, balancing the risks of stopping too early against the chance of missing out on better options if you wait longer. Essentially, it helps identify the most advantageous point to act in uncertain situations.