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We analyze a two-player game of strategic experimentation with two-armed bandits. Each player has to decide in continuous time whether to use a safe arm with a known payoff or a risky arm whose likelihood of delivering payoffs is initially unknown. The quality of the risky arms is perfectly...
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where both risky arms are of the same type, we find that learning will be complete in any Markov perfect equilibrium if the …
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where both risky arms are of the same type, we find that learning will be complete in any Markov perfect equilibrium if the …
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always exists an equilibrium exhibiting efficient long-run patterns of learning. These results extend to a three-player game …
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