- A-Z
- Jena Economic Resea...
- Volume 3
- Learning from the E...
- Autor(in)
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Friedrich-Schiller-Universität Jena. Wirtschaftswissenschaftliche Fakultät
- Erschienen
- 6. August 2009
- Nummer des Discussion-Papers
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2009-065
- Schlagwort(e)
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coordination
experiment
parallel search
two-armed bandit
- Zusammenfsg.
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In this paper we are studying a multiple player two-armed bandit model with two risky arms in discrete time. Players have to find the superior arm and can learn from others’ history of choices and successes. In equilibrium, there is no conflict between individual and social rationality. If agents depart from perfect rationality and use count heuristics, they can benefit from coordination (or centralization) of search activities. We test the conjecture that agents gain from coordination with a between-subject design in two treatments. In the experiments we find no gains from coordination. Instead, we find less severe deviations from the equilibrium strategy in the non-coordinated treatment.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- experimental economics
- JEL-Classification for JER
- C91 - Laboratory, Individual Behavior ; D83 - Search; Learning; Information and Knowledge; Communication; Belief ; O33 - Technological Change: Choices and Consequences; Diffusion Processes