We study a setting with many countries; in each country there are firms that can sell in the domestic as well as foreign markets. Countries can sign bilateral free-trade agreements that lower import tariffs and thereby facilitate trade. We allow a country to sign any number of bilateral...

The authors study learning in organizations comprised of short-lived agents with heterogeneous beliefs. It is shown that the sequence of actions converges in probability to the set of ex-post optimal actions. Under some identifiability conditions, beliefs also converge in probability to point...