Cournot Competition and Endogenous Firm Size
Barr and Saraceno (JEDC, forthcoming) model the firm as a type of artificial neural network (ANN) which plays a repeated Cournot game. Each period, the network/firm must estimate the relationship between environmental conditions and optimal output. Among other results, the paper develops the notion of a Network Size Equilibrium (NSE): which is an optimal network size for each of the players. The concept of NSE allows us to map environmental complexity to a type of industrial structure, i.e., the average network size in equilibrium. This paper builds on the previous work by exploring the dynamic adjustment process of networks. That is to say, we explore how the network (firm) evolves over time in reaction to the environmental complexity and the behavior of its rival. We model how firms endogenously "grow" over time in the adjustment process toward a network size equilibrium by exploring different adjustment algorithms, which may involve different costs. Further we explore the stability and the types of equilibria that can emerge, given different environmental scenarios.
|Date of creation:||11 Aug 2004|
|Date of revision:|
|Contact details of provider:|| Web page: http://comp-econ.org/|
More information through EDIRC
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.:
- Jason Barr & Francesco Saraceno, 2009.
"Organization, learning and cooperation,"
Sciences Po publications
info:hdl:2441/9832, Sciences Po.
- Jason Barr & Francesco Saraceno, 2004. "Organization, Learning and Cooperation," Working Papers hal-01065495, HAL.
- Jason Barr & Francesco Saraceno, 2004. "Organization, Learning and Cooperation," Computational Economics 0402001, EconWPA.
- Jason Barr & Francesco Saraceno, 2004. "Organization, Learning and Cooperation," Sciences Po publications 2004-001, Sciences Po.
- Jason Barr & Francesco Saraceno, 2009. "Organization, learning and cooperation," Post-Print hal-01052800, HAL.
- Philippe Mathieu & Bruno Beaufils & Olivier Brandouy, 2005. "Artificial Economics," Post-Print hal-00826572, HAL.
- Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, March.
- Radner, Roy, 1993. "The Organization of Decentralized Information Processing," Econometrica, Econometric Society, vol. 61(5), pages 1109-46, September.
- Evans, David S, 1987.
"Tests of Alternative Theories of Firm Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 95(4), pages 657-74, August.
- Stephen Nickell, 1993.
"Competition and Corporate Performance,"
CEP Discussion Papers
dp0182, Centre for Economic Performance, LSE.
- Martin Currie & Stan Metcalfe, 2001. "Firm routines, customer switching and market selection under duopoly," Journal of Evolutionary Economics, Springer, vol. 11(4), pages 433-456.
- Myong-Hun Chang & Joseph E Harrington Jr, 2004.
"Agent-Based Models of Organizations,"
Economics Working Paper Archive
515, The Johns Hopkins University,Department of Economics.
- DeCanio, Stephen J. & Watkins, William E., 1998.
"Information processing and organizational structure,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 36(3), pages 275-294, August.
- Stephen J. DeCanio & William E. Watkins, . "Information Processing and Organizational Structure," Computing in Economics and Finance 1997 163, Society for Computational Economics.
- Barr, Jason & Saraceno, Francesco, 2005. "Cournot competition, organization and learning," Journal of Economic Dynamics and Control, Elsevier, vol. 29(1-2), pages 277-295, January.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Barr, Jason & Saraceno, Francesco, 2002. "A computational theory of the firm," Journal of Economic Behavior & Organization, Elsevier, vol. 49(3), pages 345-361, November.
- Jan W. Rivkin & Nicolaj Siggelkow, 2003. "Balancing Search and Stability: Interdependencies Among Elements of Organizational Design," Management Science, INFORMS, vol. 49(3), pages 290-311, March.
When requesting a correction, please mention this item's handle: RePEc:sce:scecf4:129. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.