Johannes Hoelzemann, University of Toronto - September 17, 2019
Johannes Hoelzemann, University of Toronto will present a seminar at 4:00pm in Arts 807
Event
Title: Bandits in the Lab
Abstract: We experimentally implement a dynamic public-good problem, where the public good in question is the evolving information about agents’ common state of the world. Specifically, we test Keller, Rady, and Cripps (2005)’ game of strategic experimentation with exponential bandits in the laboratory. We find strong support for the prediction of free-riding because of strategic concerns. We also find strong evidence for behavior that is characteristic of Markov Perfect Equilibrium: non-cut-off behavior, lonely pioneers and frequent switches of action.