Dynamic Price Competition, Learning-By-Doing and Strategic Buyers

This paper was written while Andrew Sweeting was serving as Director of the Bureau of Economics at the Federal Trade Commission (FTC). The views expressed are those of the authors, and do not reflect the views of the FTC, its staff or any individual Commissioner. We are very grateful to Uli Doraszelski and Steve Kryukov for access to their computational results which helped to confirm our own results with non-strategic buyers. We are also very grateful to David Besanko and Uli Doraszelski for insightful comments, as well as to conference and seminar participants at Penn State, the FTC and the Washington DC IO conference. All errors are our own. We have no material or relevant financial relationships to disclosure. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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