The GAME THEORY AND COMPUTATION GROUP has been founded with the aim of melting together two complementary aspects of the interactive decision making.
On one side, the aspect of studying and modeling interactive situations, on the other side the more applied issues of studying computational tools to deal with specific classes of problems.
The group is strongly interested in collaborations with other institutions; currently it has a convention with the laboratory Lamsade of the Université Paris Dauphine and with the Energy department of Politecnico di Milano, to share a co-financed Ph.D. grant. Every scholar/institution interested in having a joint project with us is very welcome.
Bayesian learning in markets with common value
(Faculty of Industrial Engineering, Technion Israel Institute of Technology-Haifa)
When: Wednesday, January 24th at 3.00 pm
Where: Seminar Room of the Department of Economics, Management and Statistics University of Milan-Bicocca, Piazza Ateneo Nuovo 1, Building U7, second floor, room 2104
Two firms produce substitute goods with unknown quality. At each stage the firms set prices and a consumer with private information and unit demand buys from one of the firms. Both firms and consumers see the entire history of prices and purchases. Will such markets aggregate information? Will the superior firm necessarily prevail? We adapt the classical social learning model by introducing strategic dynamic pricing. We provide necessary and sufficient conditions for learning. In contrast to previous results, learning
can occur when signals are bounded. This happens when signals exhibit the newly introduced vanishing likelihood property.
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