LEARNING, EXPERIMENTATION, AND THE OPTIMAL OUTPUT DECISIONS OF A COMPETITIVE FIRM.
Publication
, Journal Article
Harpaz, G; Lee, W; Winkler, RL
Published in: Management Science
January 1, 1982
This study considers the effect of learning from experience on the output decisions of a perfectly competitive firm faced with the demand uncertainty. Specifically, a Bayesian framework for expectations formation and demand forecasting by a perfectly competitive firm is presented. Focusing the analysis on the determination of optimal sequential output decisions, it is shown that through output experimentation, the experimenting firm will select a non-myoptic sequential policy and will tend to overproduce. The exact magnitude of the overproduction and the economic value of experimentation are contingent upon model parameters and the length of the planning horizon.
Duke Scholars
Published In
Management Science
DOI
ISSN
0025-1909
Publication Date
January 1, 1982
Volume
28
Issue
6
Start / End Page
589 / 603
Related Subject Headings
- Operations Research
- 15 Commerce, Management, Tourism and Services
- 08 Information and Computing Sciences
Citation
APA
Chicago
ICMJE
MLA
NLM
Harpaz, G., Lee, W., & Winkler, R. L. (1982). LEARNING, EXPERIMENTATION, AND THE OPTIMAL OUTPUT DECISIONS OF A COMPETITIVE FIRM. Management Science, 28(6), 589–603. https://doi.org/10.1287/mnsc.28.6.589
Harpaz, G., W. Lee, and R. L. Winkler. “LEARNING, EXPERIMENTATION, AND THE OPTIMAL OUTPUT DECISIONS OF A COMPETITIVE FIRM.” Management Science 28, no. 6 (January 1, 1982): 589–603. https://doi.org/10.1287/mnsc.28.6.589.
Harpaz G, Lee W, Winkler RL. LEARNING, EXPERIMENTATION, AND THE OPTIMAL OUTPUT DECISIONS OF A COMPETITIVE FIRM. Management Science. 1982 Jan 1;28(6):589–603.
Harpaz, G., et al. “LEARNING, EXPERIMENTATION, AND THE OPTIMAL OUTPUT DECISIONS OF A COMPETITIVE FIRM.” Management Science, vol. 28, no. 6, Jan. 1982, pp. 589–603. Scopus, doi:10.1287/mnsc.28.6.589.
Harpaz G, Lee W, Winkler RL. LEARNING, EXPERIMENTATION, AND THE OPTIMAL OUTPUT DECISIONS OF A COMPETITIVE FIRM. Management Science. 1982 Jan 1;28(6):589–603.
Published In
Management Science
DOI
ISSN
0025-1909
Publication Date
January 1, 1982
Volume
28
Issue
6
Start / End Page
589 / 603
Related Subject Headings
- Operations Research
- 15 Commerce, Management, Tourism and Services
- 08 Information and Computing Sciences