Learning While Experimenting

A-Tier
Journal: Economic Journal
Year: 2020
Volume: 130
Issue: 625
Pages: 65-92

Authors (3)

Ettore Damiano (not in RePEc) Hao Li (not in RePEc) Wing Suen (University of Hong Kong)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

An agent performing risky experimentation can benefit from suspending it to learn directly about the state. 'Positive' information acquisition seeks news that would confirm the state that favours experimentation. It is used as a last-ditch effort when the agent is pessimistic about the risky arm before abandoning it. 'Negative' information acquisition seeks news that would demonstrate that experimentation is futile. It is used as an insurance strategy to avoid wasteful experimentation when the agent is still optimistic. A higher reward from risky experimentation expands the region of beliefs that the agent optimally chooses information acquisition rather than experimentation.

Technical Details

RePEc Handle
repec:oup:econjl:v:130:y:2020:i:625:p:65-92.
Journal Field
General
Author Count
3
Added to Database
2026-01-25