We examine a game-theoretic model of a two-firm R&D race in which expenditures on R&D and the concomitant increase in experience/learning enable the firms to increase their probability of discovering an invention. The learning process is stochastic. It generates a unique subgame-perfect...

An individual is repeatedly offered the opportunity to invest in a risky asset whose return distribution is unknown. Because the return distribution is constant over time, however, he is able to learn about that distribution by observing investment outcomes. Results are presented regarding the...