Is it better to move first, or second--- to innovate, or to imitate? Suppose one player has superior information about which of two new markets is better. If he enters first, he might be able to secure a natural monopoly. (The less-informed player also has this motive.) If he enters second, he...

We consider a game of strategic experimentation in the presence of competition between two agents. Each agent faces a two-armed bandit problem in which she continually chooses between her private, risky arm and a common, safe arm. An agent has exclusive access to her private arm. However, only...