Keller, Godfrey; Rady, Sven; Cripps, Martin - In: Econometrica 73 (2005) 1, pp. 39-68
We analyze a game of strategic experimentation with two-armed bandits whose risky arm might yield payoffs after exponentially distributed random times. Free-riding causes an inefficiently low level of experimentation in any equilibrium where the players use stationary Markovian strategies with...