The evolution of Walrasian behavior in oligopolies
type: Item
instance of: scholarly article
title: The evolution of Walrasian behavior in oligopolies
zbMATH Open document ID: 0960.91046
DOI: 10.1016/S0304-4068(99)00010-5
author: Klaus R. Schenk-Hoppé
published in: Journal of Mathematical Economics
publication date: 2001-05-11T00:00:00Z
review text: In this paper an oligopoly of at least two firms producing a homogeneous good is considered. Firms repeatedly play a Cournot game. The only information available to firms are all last periods production quantities and profits. Therefore classic game-theoretic considerations cannot be applied. A good strategy in this setting seems to be the imitation of the behavior of the most successful competitor (based on past data). The occurrence of new information and behavior is modelled by allowing firms to experiment. The evolutionary model considered in this paper is described by a Markov chain on an arbitrarily fixed set of feasible production quantities. It is proved that only (evolutionary) stable sets are selected by the unique invariant measure of the induced Markov chain as the probability of experimentations tends to zero. Moreover it is shown that stable singletons and symmetric Walrasian equilibria coincide in general and that Walrasian equilibria can be approximated by stable proper intervals.
reviewed by: S. Nickel
Mathematics Subject Classification ID: 91B38
Mathematics Subject Classification ID: 91A22
zbMATH DE Number: 1428353
zbMATH Keywords: evolution
zbMATH Keywords: imitation
zbMATH Keywords: Cournot oligopoly
zbMATH Keywords: Walrasian equilibria
MaRDI profile type: Publication
cites work: Q5822308
cites work: Q3672830
cites work: Q3673419
cites work: Q4121644
cites work: Learning, Mutation, and Long Run Equilibria in Games
cites work: Markov chains and stochastic stability
cites work: Convex Analysis
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cites work: The Evolution of Walrasian Behavior
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full work available at URL: s0304-4068(99)00010-5
OpenAlex ID: W1978298967
description: scientific article; zbMATH DE number 1428353