The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Sep, 1988, Volume 56, Issue 5
https://doi.org/0012-9682(198809)56:5<1045:CASPWU>2.0.CO;2-A
p. 1045-1064
David Easley, Nicholas M. Kiefer
The problem of controlling a stochastic process with unknown parameters over an infinite horizon with discounting is considered. The possibility of sacrificing current period expected reward for information leading to possible increases in future reward is examined. Agents express beliefs about unknown parameters in terms of distributions. Under general conditions the sequence of beliefs converges to a limit distribution. The limit distribution may or may not be concentrated at the true parameter value. In some cases complete learning is optimal; in others the optimal strategy does not imply complete learning. The paper concludes with examination of some special cases including high and low discount rates, discrete parameter and action spaces (the n-armed bandit with correlated arms), and a class of examples in which incomplete learning is optimal.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
