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Experimentation and Observational Learning in a Market with Exit

Valimaki, Juuso; Murto, Pauli - Society for Economic Dynamics - SED - 2005

Persistent link: https://www.econbiz.de/10005069406

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

Optimal Job Design and Career Dynamics in the Presence of Uncertainty

Pastorino, Elena - Society for Economic Dynamics - SED - 2004

experimentation problem, a discounted multi-armed bandit with independent and dependent arms. These equilibria are all ex ante …

Persistent link: https://www.econbiz.de/10005090887

Market Experimentation and Pricing

Bergemann, Dirk; Valimaki, Juuso - Cowles Foundation for Research in Economics, Yale University - 1996

offered is unknown to the market. The market participants learn more about the true value of the product as experimentation … occurs over time. Firms set prices to induce experimentation with their product. The aggregate outcomes are public … externality leads to too much learning. Buyers do not consider the impact of their experimentation on other buyers while the …

Persistent link: https://www.econbiz.de/10005093954

Structural Uncertainty and Central Bank Conservatism: The Ignorant Should Keep Their Eyes Shut

Rosal, Joao Mauricio; Spagat, Michael - C.E.P.R. Discussion Papers - 2002

We study the problem of a central bank whose policy actions simultaneously affect the information flow about its expectations-augmented Phillips curve and its reputation for toughness in fighting inflation. In an environment with an unknown relationship between inflation surprises and output,...

Persistent link: https://www.econbiz.de/10005497983

Efficient Dynamic Auctions

Bergemann, Dirk; Valimaki, Juuso - Cowles Foundation for Research in Economics, Yale University - 2006

We consider the truthful implementation of the socially efficient allocation in a dynamic private value environment in which agents receive private information over time. We show that a suitable generalization of the Vickrey-Clark-Groves mechanism, based on the marginal contribution of each...

Persistent link: https://www.econbiz.de/10005593293

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

Bandit Problems

Bergemann, Dirk; Valimaki, Juuso - Cowles Foundation for Research in Economics, Yale University - 2006

We survey the literature on multi-armed bandit models and their applications in economics. The multi-armed bandit problem is a statistical decision model of an agent trying to optimize his decisions while improving his information at the same time. This classic problem has received much...

Persistent link: https://www.econbiz.de/10005593445

Pricing, learning, and strategic behavior in a single-sale model

Serio, Virginia Vera de; Chade, Hector - In: Economic Theory 19 (2002) 2, pp. 333-353

We analyze an infinite horizon model where a seller who owns an indivisible unit of a good for sale has incomplete information about the state of the world that determines not only the demand she faces but also her own valuation for the good. Over time, she randomly meets potential buyers who...

Persistent link: https://www.econbiz.de/10005596674