IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v176y2019icp83-85.html
   My bibliography  Save this article

Cournot competition, imitation, and information networks

Author

Listed:
  • Shi, Fei
  • Zhang, Boyu

Abstract

We develop a stochastic learning model of Cournot competition on arbitrary networks, where firms can only observe local information and imitate the locally best. The Walrasian equilibrium is uniquely selected for any connected information network.

Suggested Citation

  • Shi, Fei & Zhang, Boyu, 2019. "Cournot competition, imitation, and information networks," Economics Letters, Elsevier, vol. 176(C), pages 83-85.
    • Handle: RePEc:eee:ecolet:v:176:y:2019:i:c:p:83-85
    DOI: 10.1016/j.econlet.2019.01.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176519300096
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2019.01.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Apesteguia, Jose & Huck, Steffen & Oechssler, Jorg, 2007. "Imitation--theory and experimental evidence," Journal of Economic Theory, Elsevier, vol. 136(1), pages 217-235, September.
    2. Schlag, Karl H., 1999. "Which one should I imitate?," Journal of Mathematical Economics, Elsevier, vol. 31(4), pages 493-522, May.
    3. Glenn Ellison, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(1), pages 17-45.
    4. Jan Potters & Sigrid Suetens, 2013. "Oligopoly Experiments In The Current Millennium," Journal of Economic Surveys, Wiley Blackwell, vol. 27(3), pages 439-460, July.
    5. Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 58, pages 211-211.
    6. Bergin, James & Bernhardt, Dan, 2009. "Cooperation through imitation," Games and Economic Behavior, Elsevier, vol. 67(2), pages 376-388, November.
    7. Apesteguia, Jose & Huck, Steffen & Oechssler, Jörg & Weidenholzer, Simon, 2010. "Imitation and the evolution of Walrasian behavior: Theoretically fragile but behaviorally robust," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1603-1617, September.
    8. Carlos Alós-Ferrer & Fei Shi, 2012. "Imitation with asymmetric memory," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(1), pages 193-215, January.
    9. Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January.
    10. Fernando Vega-Redondo, 1997. "The Evolution of Walrasian Behavior," Econometrica, Econometric Society, vol. 65(2), pages 375-384, March.
    11. Alós-Ferrer, Carlos, 2008. "Learning, bounded memory, and inertia," Economics Letters, Elsevier, vol. 101(2), pages 134-136, November.
    12. Schlag, Karl H., 1998. "Why Imitate, and If So, How?, : A Boundedly Rational Approach to Multi-armed Bandits," Journal of Economic Theory, Elsevier, vol. 78(1), pages 130-156, January.
    13. Alós-Ferrer, Carlos & Buckenmaier, Johannes, 2017. "Cournot vs. Walras: A reappraisal through simulations," Journal of Economic Dynamics and Control, Elsevier, vol. 82(C), pages 257-272.
    14. Alós-Ferrer, Carlos & Weidenholzer, Simon, 2008. "Contagion and efficiency," Journal of Economic Theory, Elsevier, vol. 143(1), pages 251-274, November.
    15. Alos-Ferrer, Carlos & Weidenholzer, Simon, 2006. "Imitation, local interactions, and efficiency," Economics Letters, Elsevier, vol. 93(2), pages 163-168, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qiang Wang & Linjie Liu & Xiaojie Chen, 2020. "Evolutionary Dynamics of Cooperation in the Public Goods Game with Individual Disguise and Peer Punishment," Dynamic Games and Applications, Springer, vol. 10(3), pages 764-782, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alós-Ferrer, Carlos & Weidenholzer, Simon, 2014. "Imitation and the role of information in overcoming coordination failures," Games and Economic Behavior, Elsevier, vol. 87(C), pages 397-411.
    2. Jonas Hedlund, 2015. "Imitation in Cournot oligopolies with multiple markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 567-587, November.
    3. Carlos Alós-Ferrer & Nick Netzer, 2015. "Robust stochastic stability," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 58(1), pages 31-57, January.
    4. Ge Jiang & Simon Weidenholzer, 2017. "Local interactions under switching costs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(3), pages 571-588, October.
    5. Leininger, Wolfgang & Moghadam, Hamed Markazi, 2018. "Asymmetric oligopoly and evolutionary stability," Mathematical Social Sciences, Elsevier, vol. 96(C), pages 1-9.
    6. Hedlund Jonas, 2012. "Altruism and Local Interaction," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-27, June.
    7. V. Masson, 2015. "Information, interaction and memory," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(4), pages 1015-1032, November.
    8. Hsiao-Chi Chen & Yunshyong Chow & Li-Chau Wu, 2013. "Imitation, local interaction, and coordination," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(4), pages 1041-1057, November.
    9. Cui, Zhiwei & Wang, Rui, 2016. "Collaboration in networks with randomly chosen agents," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 129-141.
    10. Tsakas, Nikolas, 2012. "Naive learning in social networks: Imitating the most successful neighbor," MPRA Paper 37796, University Library of Munich, Germany.
    11. Armstrong, Mark & Huck, Steffen, 2010. "Behavioral economics as applied to firms: a primer," MPRA Paper 20356, University Library of Munich, Germany.
    12. Schipper, Burkhard C., 2009. "Imitators and optimizers in Cournot oligopoly," Journal of Economic Dynamics and Control, Elsevier, vol. 33(12), pages 1981-1990, December.
    13. Tsakas Nikolas, 2014. "Imitating the Most Successful Neighbor in Social Networks," Review of Network Economics, De Gruyter, vol. 12(4), pages 1-33, February.
    14. Abhimanyu Khan & Ronald Peeters, 2020. "Evolution of Behavior When Duopolists Choose Prices and Quantities," Dynamic Games and Applications, Springer, vol. 10(2), pages 493-508, June.
    15. Ania, Ana B. & Troger, Thomas & Wambach, Achim, 2002. "An evolutionary analysis of insurance markets with adverse selection," Games and Economic Behavior, Elsevier, vol. 40(2), pages 153-184, August.
    16. Yasuhiro Shirata, 2020. "Evolution of a Collusive Price in a Networked Market," Dynamic Games and Applications, Springer, vol. 10(2), pages 528-554, June.
    17. Leonardo Boncinelli, 2007. "Global vs. Local Information," Department of Economics University of Siena 520, Department of Economics, University of Siena.
    18. Jonathan Newton, 2018. "Evolutionary Game Theory: A Renaissance," Games, MDPI, vol. 9(2), pages 1-67, May.
    19. Khan, Abhimanyu & Peeters, Ronald, 2017. "Imitation and price competition in a differentiated market," Journal of Economic Dynamics and Control, Elsevier, vol. 82(C), pages 177-194.
    20. Alós-Ferrer, Carlos & Buckenmaier, Johannes, 2017. "Cournot vs. Walras: A reappraisal through simulations," Journal of Economic Dynamics and Control, Elsevier, vol. 82(C), pages 257-272.

    More about this item

    Keywords

    Trading institutions; Cournot competition; Imitation; Information networks;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:176:y:2019:i:c:p:83-85. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.