Evolved perception and behaviour in oligopolies
A previous study, which examined oligopolists as responding simply to past prices of their strategic rivals, used data from a mature market with stable rules of thumb (mappings from past actions or states of the market to present prices) for the oligopolists' behaviour, whether purposefully learnt or emerging from the natural selection of the rivalry. The earlier study imposed exogenous partitions on the action space, as perceived by the players. This study explores how such perceptions might be endogenised. A firm answer to the question of how oligopolists partition their perceptions of others' actions, both through time and across the price space, will also provide information on how much or how little information they choose to use: in short, how boundedly rational oligopolists are. We use data from a retail coffee market to examine the evolved optimal partitioning and mapping of price space, manifest as the oligopolists' rules of thumb.
(This abstract was borrowed from another version of this item.)
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- James Dow, 1991. "Search Decisions with Limited Memory," Review of Economic Studies, Oxford University Press, vol. 58(1), pages 1-14.
- D. Samet, 1987.
"Ignoring Ignorance and Agreeing to Disagree,"
749, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- David F. Midgley & Robert E. Marks & Lee G. Cooper, 1995.
"Breeding Competitive Strategies,"
95-06-052, Santa Fe Institute.
- Kalai, Ehud & Stanford, William, 1988.
"Finite Rationality and Interpersonal Complexity in Repeated Games,"
Econometric Society, vol. 56(2), pages 397-410, March.
- Ehud Kalai & William Stanford, 1986. "Finite Rationality and Interpersonal Complexity in Repeated Games," Discussion Papers 679, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Banks, J.S. & Sundaram, R.K., 1989.
"Repeated Games, Finite Automata, And Complexity,"
RCER Working Papers
183, University of Rochester - Center for Economic Research (RCER).
- Margaret E. Slade, 1992. "Vancouver's Gasoline-Price Wars: An Empirical Exercise in Uncovering Supergame Strategies," Review of Economic Studies, Oxford University Press, vol. 59(2), pages 257-276.
- Rubinstein, Ariel, 1986.
"Finite automata play the repeated prisoner's dilemma,"
Journal of Economic Theory,
Elsevier, vol. 39(1), pages 83-96, June.
- Ariel Rubinstein, 1997. "Finite automata play the repeated prisioners dilemma," Levine's Working Paper Archive 1639, David K. Levine.
- Dimitri, Nicola, 1993. "Learning partitions," Economics Letters, Elsevier, vol. 42(2-3), pages 195-199.
- Barton L. Lipman, 1993.
"Information Processing and Bounded Rationality: A Survey,"
872, Queen's University, Department of Economics.
- Barton L. Lipman, 1995. "Information Processing and Bounded Rationality: A Survey," Canadian Journal of Economics, Canadian Economics Association, vol. 28(1), pages 42-67, February.
- John Geanakoplos, 1989. "Game Theory Without Partitions, and Applications to Speculation and Consensus," Cowles Foundation Discussion Papers 914, Cowles Foundation for Research in Economics, Yale University.
When requesting a correction, please mention this item's handle: RePEc:eee:dyncon:v:22:y:1998:i:8-9:p:1209-1233. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.