Bergemann, Dirk; Valimaki, Juuso - Cowles Foundation for Research in Economics, Yale University - 1996
We present a continuous-time model of Bayesian learning in a duopolistic market. Initially the value of one product … externality leads to too much learning. Buyers do not consider the impact of their experimentation on other buyers while the … and allocations in this two-sided learning model. The analysis is presented for a finite number of buyers as well as for a …