Evolved Perception and Behaviour in Oligopolies
A previous study, which examined oligopolists as responding simply to past prices of their strategic rivals, used data from a mature market with stable rules of thumb (mappings from past actions or states of the market to present prices) for the oligopolists' behaviour, whether purposefully learnt or emerging from the natural selection of the rivalry. The earlier study imposed exogenous partitions on the action space, as perceived by the players. This study explores how such perceptions might be endogenised. A firm answer to the question of how oligopolists partition their perceptions of others' actions, both through time and across the price space, will also provide information on how much or how little information they choose to use: in short, how boundedly rational oligopolists are. We use data from a retail coffee market to examine the evolved optimal partitioning and mapping of price space, manifest as the oligopolists' rules of thumb.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Econometrics, University of Geneva, 102 Bd Carl-Vogt, 1211 Geneva 4, Switzerland|
Web page: http://www.unige.ch/ce/ce96/welcome.html
More information through EDIRC
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.:
- Barton L. Lipman, 1995.
"Information Processing and Bounded Rationality: A Survey,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 28(1), pages 42-67, February.
- Barton L. Lipman, 1993. "Information Processing and Bounded Rationality: A Survey," Working Papers 872, Queen's University, Department of Economics.
- Ehud Kalai & William Stanford, 1986.
"Finite Rationality and Interpersonal Complexity in Repeated Games,"
679, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Kalai, Ehud & Stanford, William, 1988. "Finite Rationality and Interpersonal Complexity in Repeated Games," Econometrica, Econometric Society, vol. 56(2), pages 397-410, March.
- David F. Midgley & Robert E. Marks & Lee C. Cooper, 1997.
"Breeding Competitive Strategies,"
INFORMS, vol. 43(3), pages 257-275, March.
- Margaret E. Slade, 1992. "Vancouver's Gasoline-Price Wars: An Empirical Exercise in Uncovering Supergame Strategies," Review of Economic Studies, Oxford University Press, vol. 59(2), pages 257-276.
- Ariel Rubinstein, 1997.
"Finite automata play the repeated prisioners dilemma,"
Levine's Working Paper Archive
1639, David K. Levine.
- Rubinstein, Ariel, 1986. "Finite automata play the repeated prisoner's dilemma," Journal of Economic Theory, Elsevier, vol. 39(1), pages 83-96, June.
- Dimitri, Nicola, 1993. "Learning partitions," Economics Letters, Elsevier, vol. 42(2-3), pages 195-199.
- D. Samet, 1987.
"Ignoring Ignorance and Agreeing to Disagree,"
749, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- James Dow, 1991. "Search Decisions with Limited Memory," Review of Economic Studies, Oxford University Press, vol. 58(1), pages 1-14.
- John Geanakoplos, 1989. "Game Theory Without Partitions, and Applications to Speculation and Consensus," Cowles Foundation Discussion Papers 914, Cowles Foundation for Research in Economics, Yale University.
- Banks, Jeffrey S. & Sundaram, Rangarajan K., 1990.
"Repeated games, finite automata, and complexity,"
Games and Economic Behavior,
Elsevier, vol. 2(2), pages 97-117, June.
When requesting a correction, please mention this item's handle: RePEc:sce:scecf6:_038. 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.