Social Learning in One-Arm Bandit Problems.

We study a two-player one-arm bandit problem in discrete time, in which the risky arm can have two possible types, high and low, the decision to stop experimenting is irreversible, and players observe each other's actions but not each other's payoffs. We prove that all equilibria are in cutoff strat...

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Detalles Bibliográficos
Publicado en:Econometrica Vol. 75; no. 6; pp. 1591 - 1612
Autores principales: Rosenberg, Dinah, Solan, Eilon, Vieille, Nicolas
Formato: Artículo
Publicado: Wiley-Blackwell November 2007
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:We study a two-player one-arm bandit problem in discrete time, in which the risky arm can have two possible types, high and low, the decision to stop experimenting is irreversible, and players observe each other's actions but not each other's payoffs. We prove that all equilibria are in cutoff strategies and provide several qualitative results on the sequence of cutoffs. Reprinted by permission of the publisher.