proposes a theory of firm dynamics emphasizing the interaction between learning about demand and quality choice to explain the …

We document new facts about the evolution of firm performance and prices in international markets, and propose a theory … of firm dynamics emphasizing the interaction between learning about demand and quality choice to explain the observed …

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 …