Self-confidence and survival

Heski Bar-Isaac

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We consider the impact of history on the survival of a monopolist selling single units in discrete time periods, whose quality is learned slowly. If the seller learns her own quality at the same rate as customers, a sufficiently bad run of luck could induce her to stop selling. When she knows her quality, a good seller never stops selling. Furthermore, a seller with positive, though imperfect, information sells for the same number of periods whether her information is private or public. We further consider the robustness of the central result when the seller's opportunities for strategic behaviour are limited.

Keywords: Reputation; signalling; learning; one-armed bandit; monopolist; private information; public information. (search for similar items in EconPapers)
JEL-codes: C61 C73 D42 D83 L15 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2001-10-01
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http://eprints.lse.ac.uk/19329/ Open access version. (application/pdf)

Related works:
Working Paper: Self-Confidence and Survival (2001)
Working Paper: Self-Confidence and Survival (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:19329

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