“…Researchers typically do not observe a consumer’s price beliefs (prior or posterior), which necessitates an assumption about the learning process and prior beliefs. Previous literature assumes either that consumers have rational expectations and do not learn about the price distribution (Honka 2014; Honka and Chintagunta 2017; Mehta, Rajiv, and Srinivasan 2003; Zwick et al 2003) or that consumers update their beliefs, which can explain revisits to previously searched information (Bronnenberg, Kim, and Mela 2016; Dang, Ursu, and Chintagunta 2020). The empirical literature allowing for learning assumes that consumers engage in Bayesian updating with either normally distributed priors (Chick and Frazier 2012; Ursu, Wang, and Chintagunta 2020; Zhang, Ursu, and Erdem 2020), Dirichlet priors (Hu, Dang, and Chintagunta 2019; Koulayev 2013; Wu 2017), or Dirichlet process priors (De los Santos, Hortacsu, and Wildenbeest 2017; Häubl, Dellaert, and Donkers 2010).…”