Learning about common and private values in oligopoly

Dan Bernhardt, Bart Taub

Research output: Contribution to journalArticlepeer-review


We characterize a duopoly buffeted by demand and cost shocks. Firms learn about shocks from common observation, private observation, and noisy price signals. Firms internalize how outputs affect a rival's signal, and hence output. We distinguish how the nature of information -public versus private-and of what firms learn about-common versus private values-affect equilibrium outcomes. Firm outputs weigh private information about private values by more than common values. Thus, prices contain more information about private-value shocks.

Original languageEnglish (US)
Pages (from-to)66-85
Number of pages20
JournalRAND Journal of Economics
Issue number1
StatePublished - Mar 1 2015
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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