Firms' Beliefs and Learning: Models, Identification, and Empirical Evidence

Victor Aguirregabiria () and Jihye Jeon

Working Papers from University of Toronto, Department of Economics

Abstract: This paper reviews recent literature on structural models of oligopoly competition where firms have biased beliefs about primitives of the model (e.g. demand, costs) or about the strategic behavior of other firms in the market. We describe different structural models that have been proposed to study this phenomenon and examine the approaches used to identify firms' beliefs. We discuss empirical results in recent studies and show that accounting for firms' biased beliefs and learning can have important implications on our measures and interpretation of market efficiency.

Keywords: Beliefs; Dynamics; Identification; Learning; Non-equilibrium beliefs; Oligopoly competition; Structural models (search for similar items in EconPapers)
JEL-codes: C57 D81 D83 D84 L13 (search for similar items in EconPapers)
Pages: Unknown pages
Date: 2018-10-17
New Economics Papers: this item is included in nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.economics.utoronto.ca/public/workingPapers/tecipa-620.pdf Main Text (application/pdf)

Related works:
Journal Article: Firms’ Beliefs and Learning: Models, Identification, and Empirical Evidence (2020)
Working Paper: Firms' Beliefs and Learning: Models, Identification, and Empirical Evidence (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tor:tecipa:tecipa-620

Access Statistics for this paper

More papers in Working Papers from University of Toronto, Department of Economics 150 St. George Street, Toronto, Ontario.
Bibliographic data for series maintained by RePEc Maintainer ().