Berman, Nicolas; Rebeyrol, Vincent; Vicard, Vincent - 2015 - First version: November 2014, This version: March 23, 2015
This paper provides evidence that learning about demand is an important driver of firms' dynamics. We present a simple … model with Bayesian learning in which firms are uncertain about their idiosyncratic demand parameter in each of the markets … their beliefs following a new demand shock, the younger they are. To test this learning mechanism, we make use of a specific …
