Footnote:
In: Studies in Applied Economics, Vol. 5, pp 1-20, December 2011
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 5, 2011 erstellt
Description:
This paper analyzes the market diffusion of a new product whose quality is uncertain. Consumers learn the product quality by observing the history of market outcomes. Firms cannot observe how consumers evaluate the product quality; instead, they learn by observing consumer behavior. New entry occurs gradually because of informational externalities. This dual uncertainty contributes to an S-shaped diffusion of the new product with declining prices