TITLE

DEMAND-SIDE LEARNING AMONG DUOPOLIST FIRMS

AUTHOR(S)
Eisenstat, Eric
PUB. DATE
November 2009
SOURCE
International Conference on Economics & Administration Proceedin;Nov2009, p235
SOURCE TYPE
Conference Proceeding
DOC. TYPE
Article
ABSTRACT
This paper develops a simple model to analyze the behavior of duopolist firms learning about their own demand by observing the pricing decisions of better-informed firms. This learning is accomplished through Bayesian updating. Consequently, a simple model is constructed in which firms choose prices with mixed strategies in equilibrium. This result allows for non-trivial learning on the part of the less-informed firms and possible deception by the better-informed firms.
ACCESSION #
47760861

 

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