Pricing, learning, and strategic behavior in a single-sale model (Q5960805): Difference between revisions

An infinite horizon single-sale game between a seller and a population of buyers is considered. It is supposed that a seller has incomplete information about the state of the world that determines the demand. The seller randomly meets potential buyers who may have incentives to manipulate seller's learning process strategically. From the summary: ``We show that i) the seller's incentives to post and to experiment are not necessarily monotonic in the information conveyed by a buyer's rejection; and ii) as the discount factors tend to one, there are equilibria where the seller always ends up selling the good as an ex-post individually rational price''.