Salvador, Amparo Urbano; Samuelson, Larry; Mirman, … - Instituto Valenciano de Investigaciones Económicas (IVIE) - 1990
This paper considers a firm facing an uncertain demand curve. The firm can experimentally adjust its output in order to gain information that willincrease expected future profits. We examine two basic questions. Under whatconditions is it worthwhile for the firm to experiment? How does the...