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An experimental analysis of the bandit problem

Banks, Jeffrey and Olson, Mark and Porter, David (1997) An experimental analysis of the bandit problem. Economic Theory, 10 (1). pp. 55-77. ISSN 0938-2259. https://resolver.caltech.edu/CaltechAUTHORS:20160525-081816722

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Abstract

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.


Item Type:Article
Related URLs:
URLURL TypeDescription
http://dx.doi.org/10.1007/s001990050146DOIArticle
http://link.springer.com/article/10.1007/s001990050146PublisherArticle
http://rdcu.be/vqFkPublisherFree ReadCube access
http://resolver.caltech.edu/CaltechAUTHORS:20170822-142127351Related ItemWorking Paper
Alternate Title:An Experimental Analysis of the Two-Armed Bandit Program
Additional Information:© 1997 Springer-Verlag. Received: October, 27, 1994; revised version February 27, 1996.
Issue or Number:1
Classification Code:JEL Classification Numbers: C91 C73 D81 D83
Record Number:CaltechAUTHORS:20160525-081816722
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20160525-081816722
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:67334
Collection:CaltechAUTHORS
Deposited By: Ruth Sustaita
Deposited On:26 May 2016 20:36
Last Modified:03 Oct 2019 10:05

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