Pastorino, Elena - Society for Economic Dynamics - SED - 2005
firms, inducing (ex ante) inefficient job assignment and turnover. The model is estimated using longitudinal data from a … jobs and firms. Because of the trade--off between learning and short--run profit maximization, a firm's optimal job … assignment policy is solution to an experimentation problem---a multi--armed Bandit problem with dependent arms. In presence of …