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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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  13. Carlos Alós-Ferrer, 2000. "Learning, Memory, and Inertia," Vienna Economics Papers 0003, University of Vienna, Department of Economics.
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  21. Thijssen, J.J.J., 2001. "Stochastic Stability of Cooperative and Competitive Behavior in Cournot Oligopoly," Discussion Paper 2001-19, Tilburg University, Center for Economic Research.
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  23. Oechssler, Jorg, 2002. "Cooperation as a result of learning with aspiration levels," Journal of Economic Behavior & Organization, Elsevier, vol. 49(3), pages 405-409, November.
  24. Schaffer, Mark E., 1989. "Are profit-maximisers the best survivors? : A Darwinian model of economic natural selection," Journal of Economic Behavior & Organization, Elsevier, vol. 12(1), pages 29-45, August.
  25. Drew Fudenberg & David K. Levine, 1998. "Learning in Games," Levine's Working Paper Archive 2222, David K. Levine.
  26. Fernando Vega-Redondo, 1997. "The Evolution of Walrasian Behavior," Econometrica, Econometric Society, vol. 65(2), pages 375-384, March.
  27. Rhode, Paul & Stegeman, Mark, 2001. "Non-Nash equilibria of Darwinian dynamics with applications to duopoly," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 415-453, March.
  28. Tanaka, Yasuhito, 2001. "Evolution to equilibrium in an asymmetric oligopoly with differentiated goods," International Journal of Industrial Organization, Elsevier, vol. 19(9), pages 1423-1440, November.
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