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We present a diagrammatic and step-by-step analysis of price signaling quality. Because quality is a continuum on the … equilibrium. We first study the behavior of the monopoly when price conveys information about quality. We then show the effect of …
Persistent link: https://www.econbiz.de/10008876409
; this generates a search rule that accounts for learning systematically. In this search environment, a multiproduct seller …
Persistent link: https://www.econbiz.de/10014566747
(through discriminatory pricing) is offset by the cost signaling quality through two distinct prices, then it is optimal to … observing prices. In a noisy learning environment, price discrimination can be detrimental to the firm and beneficial to the … buyers provides the firm with the incentive to engage in noisy price signaling. Indeed, if the benefit from price flexibility …
Persistent link: https://www.econbiz.de/10011252852
; this generates a search rule that accounts for learning systematically. In this search environment, a multiproduct seller …
Persistent link: https://www.econbiz.de/10014567496
quality is learned slowly. If the seller learns her own quality at the same rate as customers, a sufficiently bad run of luck … could induce her to stop selling. When she knows her quality, a good seller never stops selling. Furthermore, a seller with …
Persistent link: https://www.econbiz.de/10010746467
Using belief elicitation, the paper investigates the formation and the evolution of beliefs in a signalling game in which a common prior on Sender's type is not induced. Beliefs are elicited about the type of the Sender and about the strategies of the players. The experimental subjects often...
Persistent link: https://www.econbiz.de/10009535526
Why do individuals interpret the same information differently? We propose that individuals follow Bayes' Rule when forming posteriors with one exception: when assessing the credibility of experts, they "double-dip" the data and use already-updated beliefs instead of their priors. Our proposed...
Persistent link: https://www.econbiz.de/10011756731
This chapter provides a survey of the recent work on learning in the context of macroeconomics. Learning has several … roles. First, it provides a boundedly rational model of how rational expectations can be achieved. Secondly, learning acts … as a selection device in models with multiple REE (rational expectations equilibria). Third, the learning dynamics …
Persistent link: https://www.econbiz.de/10014024243
The aim of this research is to analyze whether and when ratings are informative signals about the quality of movies …. The ratings data of Netflix is used to fit a structural Bayesian learning model. This model links revealed experience … the quality using ratings as signals. The signal produced by one rating is very noisy and might not be taken into account …
Persistent link: https://www.econbiz.de/10005622704
(2010). My model allows for an analysis of the effects of firm learning on labor market efficiency in the presence of search … frictions. I find that firm learning increases relative expected earnings in high-ability jobs and, thereby, enhances imitation … priori. Numerical results show that firm learning does not increase labor market efficiency. …
Persistent link: https://www.econbiz.de/10012306402