TY - JOUR

T1 - Lernen durch ökonomische Aktivität: Der experimentierende Monopolist

AU - Heinemann, Maik

PY - 1996

Y1 - 1996

N2 - This paper examines a monopoly facing an uncertain demand curve. In a dynamic setting this uncertainty may lead the firm to experiment with the quantity supplied in the market. Adjusting initial supply away from its myopically optimal level eventually increases the informativeness of observed market outcomes and hence increases future profits. Conditions for optimal experimentation are discussed within a two period model. Finally, the model is extended to an infinite time horizon. It is shown that the optimal policy entails experimentation and that learning via experimentation leads to complete learning in the long run.

AB - This paper examines a monopoly facing an uncertain demand curve. In a dynamic setting this uncertainty may lead the firm to experiment with the quantity supplied in the market. Adjusting initial supply away from its myopically optimal level eventually increases the informativeness of observed market outcomes and hence increases future profits. Conditions for optimal experimentation are discussed within a two period model. Finally, the model is extended to an infinite time horizon. It is shown that the optimal policy entails experimentation and that learning via experimentation leads to complete learning in the long run.

KW - Volkswirtschaftslehre

M3 - Zeitschriftenaufsätze

VL - 47

SP - 282

EP - 297

JO - Jahrbuch für Wirtschaftswissenschaften

JF - Jahrbuch für Wirtschaftswissenschaften

SN - 0948-5139

IS - 3

ER -