Keller, Godfrey; Rady, Sven - In: Theoretical economics : TE ; an open access journal in … 5 (2010) 2, pp. 275-311
We study a game of strategic experimentation with two-armed bandits where the risky arm distributes lump-sum payoffs according to a Poisson process. Its intensity is either high or low, and unknown to the players. We consider Markov perfect equilibria with beliefs as the state variable and show...