Pack Light on the Move: Exploitation and Exploration in a Dynamic Environment

Marco LiCalzi, Davide Marchiori

Publikation: Kapitel i bog/rapport/konference-proceedingKapitel i bogForskningpeer review

Abstrakt

This paper revisits a recent study by Posen and Levinthal (Manag Sci 58:587–601, 2012) on the exploration/exploitation tradeoff for a multi-armed bandit problem, where the reward probabilities undergo random shocks. We show that their analysis suffers two shortcomings: it assumes that learning is based on stale evidence, and it overlooks the steady state. We let the learning rule endogenously discard stale evidence, and we perform the long run analyses. The comparative study demonstrates that some of their conclusions must be qualified.
OriginalsprogEngelsk
TitelArtificial Economics and Self Organization : Agent-Based Approaches to Economics and Social Systems
RedaktørerStephan Leitner, Friederike Wall
ForlagSpringer
Publikationsdato2014
Sider205-216
ISBN (Trykt)9783319009117
ISBN (Elektronisk)9783319009124
DOI
StatusUdgivet - 2014
NavnLecture Notes in Economics and Mathematical Systems
Vol/bind669
ISSN0075-8442

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