1 Synchronization and Optimality for Multi - Armed Bandit Problems in Continuous Time

نویسندگان

  • NICOLE EL KAROUI
  • IOANNIS KARATZAS
چکیده

We provide a complete solution to a general, continuous-time dynamic allocation (multi-armed bandit) problem with arms that are not necessarily independent or Markovian, using notions and results from time-changes, optimal stopping, and multi-parameter martingale theory. The independence assumption is replaced by the condition (F.4) of Cairoli & Walsh. We also introduce a synchronization identity for allocation strategies, ∗ Rsearch supported by the U.S. Army Research Office under Grant DAAH 04-95-I0528. We are grateful to Prof. Daniel Ocone for finding, and correcting, an error in our original proof of Theorem 7.1. 2 which is necessary and sufficient for optimality in the case of decreasing rewards, and which leads to the explicit construction of a strategy with all the important properties: optimality in the dynamic allocation problem, optimality in a dual (minimization) problem, and the “index-type” property of Gittins.

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تاریخ انتشار 1996