Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/221372
Authors: 
Rustichini, Aldo
Wolinsky, Asher
Year of Publication: 
1992
Series/Report no.: 
Discussion Paper 1015
Abstract: 
This paper studies the problem of a monopoly who is uncertain about the demand it faces and learns about it over time through its pricing experience. The demand curve facing the monopoly is not constant--it changes over time in how it differs from an informed monopoly's policy. It turns out that, even when the rate at which the demand varies is negligible, the stationary probability with which the monopoly's policy deviates from its informed counterpart is non-negligible, as long as the discount factor is below 1.
Document Type: 
Working Paper

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