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2016-11-07Diskussionpapier DOI: 10.18452/18424
Unraveling of Cooperation in Dynamic Collaboration
dc.contributor.authorVasama, Suvi
dc.date.accessioned2017-10-02T09:11:16Z
dc.date.available2017-10-02T09:11:16Z
dc.date.issued2016-11-07
dc.identifier.urihttp://edoc.hu-berlin.de/18452/19101
dc.description.abstractWe examine collaboration in a one-arm bandit problem in which the players' actions affect the distribution over future payoffs. The players need to exert costly effort both to enhance the value of a risky technology and to learn about its current state. Both product value and learning are public goods, which gives the players incentives to free-ride on each others' actions. This leads to an inefficiently low aggregate level of effort. When the players' actions affect the distribution over future payoffs, they eventually get trapped in the low action, causing an inefficient unraveling of the game. Moreover, the players' incentives to exert effort depend on the state that in turn depends on the aggregate effort. If the players start restricting effort when the belief decreases in expectation, the two effects play in the same direction. Higher effort encourages higher effort and vice versa. Unraveling leads to multiple symmetric Markov perfect equilibria.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin
dc.subjectStochastic gameseng
dc.subjectstrategic experimentationeng
dc.subjectBayesian learningeng
dc.subjectrestless banditseng
dc.subject.ddc330 Wirtschaft
dc.titleUnraveling of Cooperation in Dynamic Collaboration
dc.typeworkingPaper
dc.identifier.urnurn:nbn:de:kobv:11-110-18452/19101-0
dc.identifier.doihttp://dx.doi.org/10.18452/18424
local.edoc.container-titleSonderforschungsbereich 649: Ökonomisches Risiko
local.edoc.pages40
local.edoc.type-nameDiskussionpapier
local.edoc.institutionWirtschaftswissenschaftliche Fakultät
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2016
local.edoc.container-issue48
local.edoc.container-erstkatid2195055-6

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