The coexistence of stable equilibria under least squares learning

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2017
Volume: 141
Issue: C
Pages: 277-300

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper we consider firms that learn about market conditions by estimating the demand function using past market data. We show that learning may lead to suboptimal outcomes even when the estimated demand function perfectly fits the observations used in the regression and firms thus perceive to have learned the demand function correctly.

Technical Details

RePEc Handle
repec:eee:jeborg:v:141:y:2017:i:c:p:277-300
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25