We address the issue of risk aversion in a competitive equilibrium when some buyers engage in learning and information … is conveyed through the price system. Specifically, since the learning process yields uncertainty, we study the effect of …

-quantity pairs in each period. The quality of the product is initially unknown, and more information is generated through … consumers' beliefs about product quality, and characterize the changes in prices and quantities resulting from information …-valuation buyers from the market, even if the product's underlying quality is in fact high …

Consumer reviews may have perverse effects, including delays of adoption in new products of unknown quality when … adopters increases the quality reported in the reviews …

A monopolist uses prices as an instrument to influence consumers' belief about the unknown quality of its product …. We find that the firm encourages social learning for a greater range of beliefs and has greater expected revenue when it …

We study how learning affects an uninformed monopolist's supply and investment decisions under multiplicative … the random demand. Observing prices reveals this information slowly. We first show how to incorporate Bayesian learning … of learning on supply and investment decisions, as well as the steady state level of capital. Our findings are as follows …

informed to uninformed firms, moderates asymmetric incentives in information acquisition and renders the aggregate learning … outcome approximately acyclical. Our results challenge the prevailing view of procyclical learning as the source of asymmetric … business cycles. -- information choice ; rational expectations ; asymmetric information ; Bayesian learning ; strategic …

optimal level. This interplay between learning and surplus extraction is crucial to the market outcome and its dynamics. …

optimal level. This interplay between learning and surplus extraction is crucial to the market outcome and its dynamics …