Strategic experimentation with Poisson bandits.
We study a game of strategic experimentation with two-armed bandits where the risky arm distributes lump-sum payoffs according to a Poisson process. Its intensity is either high or low, and unknown to the players. We consider Markov perfect equilibria with beliefs as the state variable and show that...
Main Authors: | , |
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Format: | Journal article |
Language: | English |
Published: |
Society for Economic Theory
2010
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