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We study a sequential experimentation model with endogenous feedback. Agents choose between a safe and risky action, the latter generating stochastic rewards. When making this choice, each agent is selfishly motivated (myopic). However, agents can disclose their experiences to a public record,...
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This paper incorporates learning and reputation building into a simple dynamic stochastic model with asymmetric … information. We use the model to study a bilateral trade flow influenced significantly by learning and reputation, namely U … 1981–1984. Since learning and reputation building require time, predicted short run trade patterns can be quite different …
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