Optimal Stopping
Overview
Optimal stopping asks when to take an irreversible action as observations arrive, trading the value of waiting for more information against time, sampling, or computation costs. Classical work develops threshold policies and dynamic programming for problems such as American options, secretary problems, and prophet inequalities; newer methods learn stopping boundaries with reinforcement learning, Bayesian optimization, or sequential tests. Applications include deciding when to stop medical workups, measurements, model evaluation, or language-model reasoning, where accuracy and resource use both matter. A central challenge is making learned policies reliable when costs, environments, and evidence change, while providing calibrated guarantees on regret, error, or safety.
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