A sequential stochastic tree problem

Abstract We consider here the owner of a plot of land upon which he sequentially plants and harvests trees. The trees' growth paths follow a stochastic process, and the owner must decide when to harvest and replant, given knowledge of the process and each tree's growth history. The results of this analysis are compared with the non-repeated case derived by Brock, Rothschild and Stiglitz (1979) (hereafter B.R.S.) and found to be qualitatively similar.