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 …

New entrants very often spin out from established firms and because they set on a course at founding, their learning … imprinting notion. This is followed by a phase of intense learning efforts whereby the spinoff establishes its competitive …