Cournot or Walras? Long-Run Results in Oligopoly Games
AbstractRecent literature shows that learning in oligopoly games might in the long run result in the Cournot or in the Walrasian equilibrium. Which outcome is achieved seems to depend on the underlying learning dynamics. This paper analyzes the forces behind the learning mechanisms determining the long-run outcome. The apparent difference between social and individual learning is caused by different degrees of rationality of the learning agents: Learning the Cournot strategy requires the agents to acquire a large amount of information and behavioral sophistication, while the Walrasian strategy can be shown to be a particular "low-rationality result."
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 162 (2006)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.mohr.de/jite
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Find related papers by JEL classification:
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Thomas Riechmann, 2006. "Mixed motives in a Cournot game," Economics Bulletin, AccessEcon, vol. 4(29), pages 1-8.
- Vallée, Thomas & YIldIzoglu, Murat, 2009.
"Convergence in the finite Cournot oligopoly with social and individual learning,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 72(2), pages 670-690, November.
- Thomas Vallée & Murat Yildizoglu, 2009. "Convergence in the Finite Cournot Oligopoly with Social and Individual Learning," Working Papers halshs-00368274, HAL.
- repec:ebl:ecbull:v:4:y:2006:i:29:p:1-8 is not listed on IDEAS
- Waltman, L. & van Eck, N.J.P. & Dekker, R. & Kaymak, U., 2009.
"Economic Modeling Using Evolutionary Algorithms: The Effect of a Binary Encoding of Strategies,"
ERIM Report Series Research in Management
ERS-2009-028-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Ludo Waltman & Nees Eck & Rommert Dekker & Uzay Kaymak, 2011. "Economic modeling using evolutionary algorithms: the effect of a binary encoding of strategies," Journal of Evolutionary Economics, Springer, vol. 21(5), pages 737-756, December.
- Thomas Riechmann, 2007. "An analysis of rent-seeking games with relative-payoff maximizers," Public Choice, Springer, vol. 133(1), pages 147-155, October.
- Koch, Rosemarie & Stadtmann, Georg, 2010. "Das Gesetz zur Angemessenheit der Vorstandsvergütung," Discussion Papers 288, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).
If references are entirely missing, you can add them using this form.