RT Monograph
SR 00
A1 Hörner, Johannes
A1 Klein, Nicolas
A1 Rady, Sven
T1 Overcoming Free-Riding in Bandit Games
YR 2020
FD 2020-08
VO 20-1132
SP 60
K1 Two-Armed Bandit
K1 Bayesian Learning
K1 Strategic Experimentation
K1 Strongly Symmetric Equilibrium.
AB This paper considers a class of experimentation games with L´evy bandits encompassing those of Bolton and Harris (1999) and Keller, Rady and Cripps (2005). Its main result is that efficient (perfect Bayesian) equilibria exist whenever players’ payoffs have a diffusion component. Hence, the trade-offs emphasized in the literature do not rely on the intrinsic nature of bandit models but on the commonly adopted solution concept (MPE). This is not an artifact of continuous time: we prove that such equilibria arise as limits of equilibria in the discretetime game. Furthermore, it suffices to relax the solution concept to strongly symmetric equilibrium.
T2 TSE Working Paper
PB TSE Working Paper
PP Toulouse
AV Published
LK https://publications.ut-capitole.fr/id/eprint/41737/
UL http://tse-fr.eu/pub/124603