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Cournot versus Walras in dynamic oligopolies with memory

  • Alos-Ferrer, Carlos

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://www.sciencedirect.com/science/article/pii/S0167-7187(03)00128-0
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Article provided by Elsevier in its journal International Journal of Industrial Organization.

Volume (Year): 22 (2004)
Issue (Month): 2 (February)
Pages: 193-217

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Handle: RePEc:eee:indorg:v:22:y:2004:i:2:p:193-217
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505551

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  15. Yasuhito Tanaka, 1999. "Long run equilibria in an asymmetric oligopoly," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(3), pages 705-715.
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  18. Alos-Ferrer, Carlos & Ania, Ana B. & Schenk-Hoppe, Klaus Reiner, 2000. "An Evolutionary Model of Bertrand Oligopoly," Games and Economic Behavior, Elsevier, vol. 33(1), pages 1-19, October.
  19. M. Kandori & R. Rob, 2010. "Evolution of Equilibria in the Long Run: A General Theory and Applications," Levine's Working Paper Archive 502, David K. Levine.
  20. Moreno, Diego & Delgado, Juan, 1999. "Coalition-proof supply function equilibria in oligopoly," UC3M Working papers. Economics 6145, Universidad Carlos III de Madrid. Departamento de Economía.
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  22. Ferreira, Jose Luis, 2003. "Strategic interaction between futures and spot markets," Journal of Economic Theory, Elsevier, vol. 108(1), pages 141-151, January.
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  24. Hehenkamp, Burkhard, 2002. "Sluggish Consumers: An Evolutionary Solution to the Bertrand Paradox," Games and Economic Behavior, Elsevier, vol. 40(1), pages 44-76, July.
  25. Conlisk, John, 1980. "Costly optimizers versus cheap imitators," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 275-293, September.
  26. 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.
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  29. Schenk-Hoppe, Klaus Reiner, 2000. "The evolution of Walrasian behavior in oligopolies," Journal of Mathematical Economics, Elsevier, vol. 33(1), pages 35-55, February.
  30. Carlos Alós-Ferrer, 2000. "Learning, Memory, and Inertia," Vienna Economics Papers 0003, University of Vienna, Department of Economics.
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