Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/158947 
Year of Publication: 
1991
Series/Report no.: 
Quaderni - Working Paper DSE No. 104
Publisher: 
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna
Abstract: 
In this paper we study the choice of competing technologies with increasing returns occasioned by learning-by-doing and learning-by-using phenomena. We study under what circumstances one technology can achieve a monopoly and eventually take the whole market by formulating a firm's optimal decision problem, when both uncertainty and increasing returns to adoption are present, In contrast with Arthur (1989) we allow agente to learn: the formulation of the decision problem takes into account the revision of the probabilities on the future states of the adoption process, according to a version of the two-armed bandit problem.
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Working Paper

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