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Cournot versus Walras in Dynamic Oligopolies with Memory

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This paper explores the impact of memory in Cournot oligopolies where firms learn through imitation of success (as suggested in Alchian (1950) and modeled in Vega-Redondo (1997)). As long as memory includes at least one period, the long-run outcomes correspond to all the quantities in the interval tension between the evolutionary stability associated to the walrasian outcome, which relies on inter-firm comparisons of simultaneous profits, and the stability of the Cournot-Nash equilibrium, derived from intertemporal comparisons of profits.

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File URL: http://homepage.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie0110.pdf
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0110.

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Date of creation: Aug 2001
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Handle: RePEc:vie:viennp:0110

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Web page: http://www.univie.ac.at/vwl

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  24. Yasuhito Tanaka, 1999. "Long run equilibria in an asymmetric oligopoly," Economic Theory, Springer, vol. 14(3), pages 705-715.
  25. Carlos Alós-Ferrer, 2000. "Learning, Memory, and Inertia," Vienna Economics Papers 0003, University of Vienna, Department of Economics.
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