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Experimentation and Learning with Network Effects

By Arthur Fishman and Neil Gandal

Abstract

This paper considers learning in an imperfectly competitive setting. By allowing an opponent a “head start," unsuccessful unilateral experimentation may jeopardize future sales and profits. We show that even in the absence of spillover and signalling effects, competition can inhibit the scope of learning, relative to a monopoly

Year: 1993
OAI identifier: oai:CiteSeerX.psu:10.1.1.198.2059
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