An experimental analysis of the bandit problem
David Porter and
Additional contact information
Mark Olson: CREED, University of Amsterdam, Amsterdam, THE NETHERLANDS
Economic Theory, 1997, vol. 10, issue 1, 55-77
We investigate, in an experimental setting, the behavior of single decision makers who at discrete time intervals over an "infinite" horizon may choose one action from a set of possible actions where this set is constant over time, i.e. a bandit problem. Two bandit environments are examined, one in which the predicted behavior should always be myopic (the two-armed bandit) and the other in which the predicted behavior should never be myopic (the one-armed bandit). We also investigate the comparative static predictions as the underlying parameters of the bandit environments are changed. The aggregate results show that the behavior in the two bandit environments are quantitatively different and in the direction of the theoretical predictions.
JEL-codes: C91 C73 D81 D83 (search for similar items in EconPapers)
Note: Received: October, 27, 1994; revised version February 27, 1996
References: Add references at CitEc
Citations: View citations in EconPapers (30) Track citations by RSS feed
Downloads: (external link)
http://link.springer.de/link/service/journals/0019 ... 10001/70100055.ps.gz (application/postscript)
Access to the full text of the articles in this series is restricted
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:10:y:1997:i:1:p:55-77
Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2
Access Statistics for this article
Economic Theory is currently edited by Nichoals Yanneils
More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().