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Asymmetric oligopoly and evolutionary stability

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  • Leininger, Wolfgang
  • Moghadam, Hamed Markazi

Abstract

It is a widely known result that in terms of evolutionary stability the long-run outcome of a Cournot oligopoly market with finite number of firms approaches the perfectly competitive Walrasian market outcome (Vega-Redondo, 1997). In this paper, we provide an alternative analysis of an asymmetric oligopoly market, which does not lead to marginal cost pricing and the competitive outcome in the long-run.

Suggested Citation

  • Leininger, Wolfgang & Moghadam, Hamed Markazi, 2018. "Asymmetric oligopoly and evolutionary stability," Mathematical Social Sciences, Elsevier, vol. 96(C), pages 1-9.
    • Handle: RePEc:eee:matsoc:v:96:y:2018:i:c:p:1-9
    DOI: 10.1016/j.mathsocsci.2018.08.002
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    References listed on IDEAS

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    Cited by:

    1. Gu, Yiquan & Hehenkamp, Burkhard & Leininger, Wolfgang, 2019. "Evolutionary equilibrium in contests with stochastic participation: Entry, effort and overdissipation," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 469-485.
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    3. Hamed Markazi Moghadam, 2020. "Price and non-price competition in an oligopoly: an analysis of relative payoff maximizers," Journal of Evolutionary Economics, Springer, vol. 30(2), pages 507-521, April.

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