Bibtex export
@article{ Hopkins2007, title = {Adaptive learning models of consumer behavior}, author = {Hopkins, Ed}, journal = {Journal of Economic Behavior & Organization}, number = {3-4}, pages = {348-368}, volume = {64}, year = {2007}, doi = {https://doi.org/10.1016/j.jebo.2006.02.010}, urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-199499}, abstract = {In a model of dynamic duopoly, optimal price policies are characterized assuming consumers learn adaptively about the relative quality of the two products. A contrast is made between belief-based and reinforcement learning. Under reinforcement learning, consumers can become locked into the habit of purchasing inferior goods. Such lock-in permits the existence of multiple history-dependent asymmetric steady states in which one firm dominates. In contrast, belief-based learning rules must lead asymptotically to correct beliefs about the relative quality of the two brands and so in this case there is a unique steady state.}, }