Actively Learning by Pricing: A Model of an Experimenting Seller.
This article presents a model of a rational seller who is actively learning the slope of his demand curve via his pricing strategy. Consequently, this seller optimally experiments with his price. Resulting price patterns show a tendency for discreteness (as observed in the data), which has proved to...
| Published in: | Economic Journal Vol. 127; no. 604; pp. 2216 - 2240 |
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| Format: | Article |
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Oxford University Press / USA
Sep2017
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| Online Access: | View this record in EBSCOhost |