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We analyze a game of technology development where players allocate resources between exploration, which continuously expands the public domain of available technologies, and exploitation, which yields a flow payoff by adopting the explored technologies. The qualities of the technologies are correlated and initially unknown, and this uncertainty is fully resolved once the technologies are explored. We consider Markov perfect equilibria with the quality difference between the best available technology and the latest technology under development as the state variable. In all such equilibria, while the players do not fully internalize the benefit of failure owing to free-riding incentives, they are more tolerant of failure than in the single-agent optimum thanks to an encouragement effect. In the unique symmetric equilibrium, the cost of exploration determines whether free-riding prevails as team size grows. Pareto improvements over the symmetric equilibrium can be achieved by asymmetric equilibria where players take turns performing exploration.
The quest to understand the fundamental building blocks of nature and their interactions is one of the oldest and most ambitious of human scientific endeavors. Facilities such as CERNs Large Hadron Collider (LHC) represent a huge step forward in this
The study of strategic or adversarial manipulation of testing data to fool a classifier has attracted much recent attention. Most previous works have focused on two extreme situations where any testing data point either is completely adversarial or a
We consider the problem of a decision-maker searching for information on multiple alternatives when information is learned on all alternatives simultaneously. The decision-maker has a running cost of searching for information, and has to decide when
We present a type system for strategy languages that express program transformations as compositions of rewrite rules. Our row-polymorphic type system assists compiler engineers to write correct strategies by statically rejecting non meaningful compo