We present a two-armed bandit model of decision making under uncertainty where the expected return to investing in the "risky arm'' increases when choosing that arm and decreases when choosing the "safe'' arm. These dynamics are natural in applications such as human capital development, job...

Before making purchase decisions, consumers often search for information on product attributes.In this paper, we incorporate a key feature of consumer search behavior---namely, search intensity---into a stochastic dynamic model. Specifically, motivated by industry evidence, we model search...