Brander and Spencer (2015a,b), to analyze the effect of consumer learning on firms' incentives to differentiate their products … more likely to invest in differentiation with consumer learning than without. This is in line with implications of the … firms compete in prices. Here, the effect of consumer learning is reversed, so that differentiation is less likely with …

consumer learning and inertia through a simple yet flexible structural model of demand. For simplicity, I limit the consumer … learning and inertia processes to only be affected by actual purchases. As a practical example, I estimate this model using … optimal prices in scenarios with different parameters for consumer learning or inertia. These counterfactuals reveal that, for …