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Imitation and Belief Learning in an Oligopoly Experiment

Author

Listed:
  • Theo Offerman

    ()

  • Jan Potters

    (University of Amsterdam)

  • Joep Sonnemans

    () (Tilburg University)

Abstract

We examine the force of three types of behavioral dynamics in quantity-setting triopoly experiments:mimicking the successful firm,following the exemplary firm, andbelief learning.Theoretically, these three rules of dynamic conduct lead to the competitive, the collusive, and the Cournot-Nash outcome, respectively. In the experiment we employ three information treatments. Each of these treatments is hypothesized to be conducive to the force of one of the three dynamic rules. To a large extent, the results are consistent with the hypothesized relationships between treatments, dynamic rules, and outcomes.

Suggested Citation

  • Theo Offerman & Jan Potters & Joep Sonnemans, 1997. "Imitation and Belief Learning in an Oligopoly Experiment," Tinbergen Institute Discussion Papers 97-116/1, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:19970116
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    References listed on IDEAS

    as
    1. Potters, Jan & van Winden, Frans, 1996. "Comparative Statics of a Signaling Game: An Experimental Study," International Journal of Game Theory, Springer;Game Theory Society, vol. 25(3), pages 329-353.
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    5. Huck, Steffen & Normann, Hans-Theo & Oechssler, Jorg, 1999. "Learning in Cournot Oligopoly--An Experiment," Economic Journal, Royal Economic Society, vol. 109(454), pages 80-95, March.
    6. Boylan Richard T. & El-Gamal Mahmoud A., 1993. "Fictitious Play: A Statistical Study of Multiple Economic Experiments," Games and Economic Behavior, Elsevier, vol. 5(2), pages 205-222, April.
    7. Roth, Alvin E. & Erev, Ido, 1995. "Learning in extensive-form games: Experimental data and simple dynamic models in the intermediate term," Games and Economic Behavior, Elsevier, vol. 8(1), pages 164-212.
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    9. Milgrom, Paul & Roberts, John, 1991. "Adaptive and sophisticated learning in normal form games," Games and Economic Behavior, Elsevier, vol. 3(1), pages 82-100, February.
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    More about this item

    Keywords

    quantity-setting oligopoly game; imitation; belief learning; experiments;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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