We empirically examine how firms learn to set prices in a new market. The 2012 privatization of off-premise liquor sales in Washington State provided a unique opportunity to observe how retailers learn to price from the point at which the learning process begins. Tracking this market as it...

This paper explores and quantifies the importance of parent brand state dependence to forward looking pricing outcomes in the area of umbrella branding and multi-product firms. We show through numerical simulations that loyalty (inertia) to the parent brand can decrease prices and reduce...