Economics at your fingertips  

Super- and submodularity of stopping games with random observations

Svetlana Boyarchenko ()

Economic Theory, 2020, vol. 70, issue 4, No 4, 983-1022

Abstract: Abstract Models of learning and experimentation based on two-armed Poisson bandits addressed several important aspects related to strategic and motivational learning, but they are not suitable to study effects that accumulate over time. We propose a new class of models of strategic experimentation which are almost as tractable as exponential models, but incorporate such realistic features as dependence of the expected rate of news arrival on the time elapsed since the start of an experiment. In these models, the experiment is stopped before news is realized whenever the rate of arrival of news reaches a critical level. This leads to longer experimentation times for experiments with possible breakthroughs than for equivalent experiments with failures. We also show that the game with conclusive failures is supermodular, and the game with conclusive breakthroughs is submodular.

Keywords: Stopping games; Supermodular games; Time-inhomogeneous Poisson process (search for similar items in EconPapers)
JEL-codes: C73 C61 D81 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

DOI: 10.1007/s00199-019-01198-4

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 () and Springer Nature Abstracting and Indexing ().

Page updated 2021-05-28
Handle: RePEc:spr:joecth:v:70:y:2020:i:4:d:10.1007_s00199-019-01198-4