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%T Adaptive learning models of consumer behavior %A Hopkins, Ed %J Journal of Economic Behavior & Organization %N 3-4 %P 348-368 %V 64 %D 2007 %K Learning; Consumer behavior; Dynamic pricing; Behavioral economics; Reinforcement learning; Market structure %= 2010-11-04T10:20:00Z %~ http://www.peerproject.eu/ %> https://nbn-resolving.org/urn:nbn:de:0168-ssoar-199499 %X 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. %C NLD %G en %9 journal article %W GESIS - http://www.gesis.org %~ SSOAR - http://www.ssoar.info