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Learning, Prices, and firm dynamics (English)

This paper documents new facts about the joint evolution of firm performance and prices in international markets and proposes a theory of firm dynamics emphasizing the interaction between learning about demand and quality choice to explain the observed patterns. Using data from the Portuguese manufacturing sector, the paper documents that: (1) within narrow product categories, firms with longer spells of activity in export destinations tend to ship...
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Bastos,Paulo S. R.; Dias,Daniel; Timoshenko,Olga A..

Learning, Prices, and firm dynamics (English). Paper is funded by the Strategic Research Program (SRP)|Policy Research working paper|no. WPS 7667 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/974531467995659059

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