Keller, Godfrey; Rady, Sven - Volkswirtschaftliche Fakultät, … - 2009
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. As the...