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Imitation and belief learning in an oligopoly experiment

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  • Offerman, T.J.S.
  • Potters, J.J.M.

    (Tilburg University, School of Economics and Management)

  • Sonnemans, J.

Abstract

We examine the force of three types of behavioural dynamics in quantity-setting triopoly experiments: (1) mimicking the successful firm, (2) rules based on following the exemplary firm, and (3) rules based on belief learning. Theoretically, these three types of rules lead to the competitive, the collusive, and the Cournot—Nash outcome, respectively. In the experiment we employ three information treatments, each of which 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, behavioural rules, and outcomes. Copyright 2002, Wiley-Blackwell.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Offerman, T.J.S. & Potters, J.J.M. & Sonnemans, J., 2002. "Imitation and belief learning in an oligopoly experiment," Other publications TiSEM a6a771c5-31ba-4193-8f76-a, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:a6a771c5-31ba-4193-8f76-a69928520be0
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/493268/Imitation.pdf
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    References listed on IDEAS

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    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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