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Learning While Experimenting

Published in The Economic Journal • Jul 19, 2019
NobleIDNI8P72W76R46S96
Authors:
Ettore Damiano
,
Hao Li
,
Wing Suen

Abstract

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 risk...

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