Cripps, Martin William; Keller, R Godfrey; Rady, Sven - C.E.P.R. Discussion Papers - 2003
This Paper studies a game of strategic experimentation with two-armed bandits whose risky arm might yield a pay-off only after some exponentially distributed random time. Because of free-riding, there is an inefficiently low level of experimentation in any equilibrium where the players use...