You searched for:
Keyword: markov-perfect equilibrium;
1 result found.
Theoretical Economics Paper
Market Experimentation in a Dynamic Differentiated-Goods Duopoly
Godfrey Keller and Sven Rady
We study the evolution of prices in a symmetric duopoly where firms are uncertain about the degree of product differentiation. Customers sometimes perceive the products as close substitutes, sometimes as highly different...Read more...