Bergemann, Dirk; Valimaki, Juuso - Cowles Foundation for Research in Economics, Yale University - 1996
offered is unknown to the market. The market participants learn more about the true value of the product as experimentation … occurs over time. Firms set prices to induce experimentation with their product. The aggregate outcomes are public … externality leads to too much learning. Buyers do not consider the impact of their experimentation on other buyers while the …