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Eductive learning and the rationalizability of oligopoly games

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  • Gaballo, Gaetano

Abstract

This paper extends the eductive learning approach in settings with non-atomistic agents. It shows the connection between the characterization of rationalizable sets by Basu (1991) and the seminal result by Guesnerie (1992) in the context of Cournot oligopoly models.

Suggested Citation

  • Gaballo, Gaetano, 2013. "Eductive learning and the rationalizability of oligopoly games," Economics Letters, Elsevier, vol. 120(3), pages 401-404.
    • Handle: RePEc:eee:ecolet:v:120:y:2013:i:3:p:401-404
    DOI: 10.1016/j.econlet.2013.05.014
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    References listed on IDEAS

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    1. Roger Guesnerie, 2001. "Short-Run Expectational Coordination: Fixed Versus Flexible Wages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 1115-1147.
    2. Guesnerie, Roger, 1992. "An Exploration of the Eductive Justifications of the Rational-Expectations Hypothesis," American Economic Review, American Economic Association, vol. 82(5), pages 1254-1278, December.
    3. R. Guesnerie, 2002. "Anchoring Economic Predictions in Common Knowledge," Econometrica, Econometric Society, vol. 70(2), pages 439-480, March.
    4. Evans, George W. & Guesnerie, Roger, 2005. "Coordination on saddle-path solutions: the eductive viewpoint--linear multivariate models," Journal of Economic Theory, Elsevier, vol. 124(2), pages 202-229, October.
    5. Bernheim, B Douglas, 1984. "Rationalizable Strategic Behavior," Econometrica, Econometric Society, vol. 52(4), pages 1007-1028, July.
    6. Börgers, Tilman & Janssen, Maarten C.W., 1995. "On the dominance solvability of large cournot games," Games and Economic Behavior, Elsevier, vol. 8(2), pages 297-321.
    7. Pearce, David G, 1984. "Rationalizable Strategic Behavior and the Problem of Perfection," Econometrica, Econometric Society, vol. 52(4), pages 1029-1050, July.
    8. Evans George W. & Guesnerie Roger, 1993. "Rationalizability, Strong Rationality, and Expectational Stability," Games and Economic Behavior, Elsevier, vol. 5(4), pages 632-646, October.
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    Cited by:

    1. Evans, George & Gibbs, Christopher & McGough, Bruce, 2021. "A Unified Model of Learning to Forecast," Working Papers 2021-10, University of Sydney, School of Economics.
    2. Bao, Te & Duffy, John, 2016. "Adaptive versus eductive learning: Theory and evidence," European Economic Review, Elsevier, vol. 83(C), pages 64-89.
    3. Gaballo, Gaetano, 2014. "Sequential coordination, higher-order belief dynamics and the E-stability principle," Journal of Economic Dynamics and Control, Elsevier, vol. 44(C), pages 270-279.

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    More about this item

    Keywords

    Expectational coordination; Higher-order beliefs; Eductive stability;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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