Bernhardt, Dan and Taub, Bart (2015) Learning about common and private values in oligopoly. The RAND Journal of Economics, Volume 46 (Number 1). pp. 66-85. doi:10.1111/1756-2171.12077 ISSN 0741-6261.

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Abstract

We characterize a duopoly buffeted by demand and cost shocks. Firms learn about shocks from common observation, private observation, and noisy price signals. Firms internalize how outputs affect a rival's signal, and hence output. We distinguish how the nature of information —public versus private—and of what firms learn about—common versus private values—affect equilibrium outcomes. Firm outputs weigh private information about private values by more than common values. Thus, prices contain more information about private-value shocks.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Competition, Imperfect
Journal or Publication Title:	The RAND Journal of Economics
Publisher:	Wiley-Blackwell Publishing, Inc.
ISSN:	0741-6261
Official Date:	2015
Dates:	Date Event 2015 Published 28 January 2015 Available 10 September 2015 Accepted
Volume:	Volume 46
Number:	Number 1
Number of Pages:	20
Page Range:	pp. 66-85
DOI:	10.1111/1756-2171.12077
Status:	Peer Reviewed
Publication Status:	Published
Date of first compliant deposit:	29 December 2015
Date of first compliant Open Access:	28 February 2017

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