Similar Search Results

Wald Revisited: The Optimal Level of Experimentation

Moscarini, Giuseppe; Smith, Lones - Cowles Foundation for Research in Economics, Yale University - 1998

This paper revisits Wald's (1947) sequential experimentation paradigm, now assuming that an impatient decision maker … irreversible action. We translate this natural discrete time experimentation story into a tractable control of variance for a … continuous time diffusion. Here we robustly characterize the optimal experimentation level: It is rising in the confidence about …

Persistent link: https://www.econbiz.de/10005762616

Dynamic pricing in the presence of individual learning

Weng, Xi - In: Journal of Economic Theory 155 (2015) C, pp. 262-299

This paper studies price dynamics in a setting in which a monopolist sells a new experience good over time to many buyers, and the seller can neither price discriminate among the buyers nor commit to a price rule. Buyers learn from their own experiences about the effectiveness of the product....

Persistent link: https://www.econbiz.de/10011189761

Gradual learning from incremental actions

Laiho, Tuomas; Murto, Pauli; Salmi, Julia - 2025

We introduce a collective experimentation problem where a continuum of agents choose the timing of irreversible actions …

Persistent link: https://www.econbiz.de/10015186295

Increasing taxes after a financial crisis : not a bad idea after all...

Koulovatianos, Christos; Mavridis, Dimitris - 2018

Based on OECD evidence, equity/housing-price busts and credit crunches are followed by substantial increases in public consumption. These increases in unproductive public spending lead to increases in distortionary marginal taxes, a policy in sharp contrast with presumably optimal Keynesian...

Persistent link: https://www.econbiz.de/10011932442

Asset pricing under rational learning about rare disasters

Koulovatianos, Christos; Wieland, Volker - 2011 - 1st Version: May 20, 2011, This version: July 28, 2011

This paper proposes a new approach for modeling investor fear after rare disasters. The key element is to take into account that investors' information about fundamentals driving rare downward jumps in the dividend process is not perfect. Bayesian learning implies that beliefs about the...

Persistent link: https://www.econbiz.de/10010387528

Collaborating

Bonatti, Alessandro; Horner, Johannes - Cowles Foundation for Research in Economics, Yale University - 2009

This paper examines moral hazard in teams over time. Agents are collectively engaged in an uncertain project, and their individual efforts are unobserved. Free-riding leads not only to a reduction in effort, but also to procrastination. The collaboration dwindles over time, but never ceases as...

Persistent link: https://www.econbiz.de/10005000297

Optimal Job Design and Career Dynamics in the Presence of Uncertainty

Pastorino, Elena - Econometric Society - 2004

showing that the equilibria of interest are strategically equivalent to the solution of an experimentation problem (a …

Persistent link: https://www.econbiz.de/10005063711

Experimentation in Markets

Bergemann, Dirk; Valimaki, Juuso - Cowles Foundation for Research in Economics, Yale University - 1999

informational externalities among the buyers and the strategic pricing by the sellers results in excessive experimentation. If the …

Persistent link: https://www.econbiz.de/10005593440

The (in)appropriate benchmark when beliefs are not the only state variable

Keller, Godfrey - Department of Economics, Oxford University - 2005

In models of learning by experimentation, there is a natural benchmark of myopia when the only intertemporal link is … experimentation, since the payoffs of a passive learner can be markedly lower than those of a naive learner. …

Persistent link: https://www.econbiz.de/10005090686

Career Dynamics Under Uncertainty: Estimating the Value of Firm Experimentation

Pastorino, Elena - Society for Economic Dynamics - SED - 2005

assignment policy is solution to an experimentation problem---a multi--armed Bandit problem with dependent arms. In presence of … associated with increased experimentation in firms. …

Persistent link: https://www.econbiz.de/10005090831

1
2
3
4
5
6
7
8
9
10
Next
Last