Indirect Evolution versus Strategic Delegation: A Comparison of Two Approaches to Explaining Economic Institutions

Two major methods of explaining economic institutions, namely by strategic choices or through (indirect) evolution, are compared for the case of a homogenous quadratic duopoly market. Sellers either can provide incentives for agents to care for sales, or evolve as sellers who care for sales in addition to profits. The two approaches are conceptually quite different, yet similar in the sense that both allow certain kinds of commitment.

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Year of publication:	1998
Authors:	Dufwenberg, M. ; Guth, W.
Institutions:	Nationalekonomiska Institutionen, Uppsala Universitet
Subject:	DUOPOLIES

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Series:	Uppsala - Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	19 pages
Classification:	C72 - Noncooperative Games ; D21 - Firm Behavior ; D43 - Oligopoly and Other Forms of Market Imperfection
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005779794