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Counter Intuitive Learning: An Exploratory Study

Author

Listed:
  • Nobuyuki Hanaki

    (Universite C^ote d'Azur, SKEMA, CNRS, GREDEG, and IUF.)

  • Alan Kirman

    (CAMS, EHESS, and Aix Marseille University.)

  • Paul Pezanis-Christou

    (School of Economics, University of Adelaide)

Abstract

The literature on learning in unknown environments emphasises reinforcing on actions which produce positive results. But, in some cases, success requires shifting from a currently successful actions to others. We examine, experimentally and theoretically in a very simple framework, how individuals initially learn by exploiting information from the pay-offs of actions taken but also from exploring new actions. We analyse if and how they learn that pay-offs are inter-temporally dependent. We then ran the same experiments but where individuals could observe the actions taken or the pay-offs obtained by others or both. Such observations improved pay-offs if one of the pair had learned to obtain the maximum pay-off.

Suggested Citation

  • Nobuyuki Hanaki & Alan Kirman & Paul Pezanis-Christou, 2016. "Counter Intuitive Learning: An Exploratory Study," School of Economics and Public Policy Working Papers 2016-12, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2016-12
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    File URL: https://media.adelaide.edu.au/economics/papers/doc/wp2016-12.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    multi-armed bandit; reinforcement learning; eureka moment; pay-off patterns; observational learning;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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