The Propagation of Cooperation in a Model of Learning with Endogenous Aspirations
AbstractIn this paper we build a spatial, aspiration-based model of learning in the context of Cournot oligopoly from which we want to explore the conditions that lead to the emergence of cooperation among firms. We consider an economy consisting of many identical duopolies; each duopoly is placed on a square of a torus. The duopolists are boundedly rational agents which adopt a very simple behavioral rule: if they are earning at least average profits, they do not change their strategies; if they are earning below-average profits they imitate the strategy adopted by one of their neighbors. We consider many variations to this simple setup and, in almost all cases, as in Dixon (1998) and Dixon and Lupi (1997) we get results that support cooperation among firms.
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 InfoPaper provided by Santa Fe Institute in its series Research in Economics with number 98-06-052e.
Date of creation: Jun 1998
Date of revision:
Contact details of provider:
Postal: 1399 Hyde Park Road, Santa Fe, New Mexico 87501
Web page: http://www.santafe.edu/sfi/publications/working-papers.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marimon, R. & McGraltan, E., 1993.
"On Adaptative Learning in Strategic Games,"
190, Cambridge - Risk, Information & Quantity Signals.
- L. Blume, 2010.
"The Statistical Mechanics of Strategic Interaction,"
Levine's Working Paper Archive
488, David K. Levine.
- Blume Lawrence E., 1993. "The Statistical Mechanics of Strategic Interaction," Games and Economic Behavior, Elsevier, vol. 5(3), pages 387-424, July.
- Anderlini, Luca & Ianni, Antonella, 1996.
"Path Dependence and Learning from Neighbors,"
Games and Economic Behavior,
Elsevier, vol. 13(2), pages 141-177, April.
- Dixon, Huw David, 1998. "Keeping Up With the Joneses: Competition and the Evolution of Collusion in an Oligopolistic Economy," CEPR Discussion Papers 1810, C.E.P.R. Discussion Papers.
- Jonard, N. & Yfldizoglu, M., 1998.
"Technological diversity in an evolutionary industry model with localized learning and network externalities,"
Structural Change and Economic Dynamics,
Elsevier, vol. 9(1), pages 35-53, March.
- Nicolas Jonard & Murat Yildizoglu, . "Technological Diversity in an Evolutionary Industry Model with Localized Learning and Network Externalities," Computing in Economics and Finance 1997 13, Society for Computational Economics.
- Canning, David, 1992.
"Average behavior in learning models,"
Journal of Economic Theory,
Elsevier, vol. 57(2), pages 442-472, August.
- Huw D. Dixon & Paolo Lupi, .
"Learning With a Known Average: a Simulation Study of Alternative Learning Rules,"
Computing in Economics and Finance 1997
154, Society for Computational Economics.
- Huw D. Dixon & Paolo Lupi, . "Learning with a Known Average: A Simulation Study of Alternative Learning Rules," Discussion Papers 97/18, Department of Economics, University of York.
- Glen Ellison, 2010.
"Learning, Local Interaction, and Coordination,"
Levine's Working Paper Archive
391, David K. Levine.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.