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Using linear approximation for demand learning, (1) why the algorithm converges given that it uses a linear function to estimate a nonlinear function? (2) If

Using linear approximation for demand learning, (1) why the algorithm converges given that it uses a linear function to estimate a nonlinear function? (2) If for stage i, the length of half stage is Li =16, the estimated function is d(p)=10-5p, what will be the two prices for next stage?

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