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Previous theoretical researches show that learning from good performers yields intense competition and results in the … useful strategic tool to mitigate competition. We introduce an evolutionary (learning) game into a duopoly model with product … even when firms have an opportunity to differentiate themselves through product differentiation and to mitigate competition …
Persistent link: https://www.econbiz.de/10003981902
Previous theoretical researches show that learning from good performers yields intense competition and results in the … useful strategic tool to mitigate competition. We introduce an evolutionary (learning) game into a duopoly model with product … even when firms have an opportunity to differentiate themselves through product differentiation and to mitigate competition. …
Persistent link: https://www.econbiz.de/10010332498
In this paper we show that a homogeneous-product market with multiple Bertrand equilibria becomes a market with a single Bertrand equilibrium when we introduce a small degree of product differentiation. When differentiation tends to zero, that Bertrand equilibrium converges to the unique...
Persistent link: https://www.econbiz.de/10013158272
We consider a mean-field model of firms competing à la Cournot on a commodity market, where the commodity price is given in terms of a power inverse demand function of the industry-aggregate production. Investment is irreversible and production capacity depreciates at a constant rate....
Persistent link: https://www.econbiz.de/10014277013
This article provides a simple account of the effect of quality competition on the extent of sequential entry …
Persistent link: https://www.econbiz.de/10012897111
This paper examines the implications for equilibrium price of a shift in demand and also provides formal characterizations in a general dynamic model of perfect equilibrium, the relation between dominated and dominant strategies, the relation between reversion and generalized reversion strategy...
Persistent link: https://www.econbiz.de/10012854224
We study interactions with uncertainty about demand sensitivity. In our solution concept (1) firms choose seemingly-optimal strategies given the level of sophistication of their data analytics, and (2) the levels of sophistication form best responses to one another. Under the ensuing equilibrium...
Persistent link: https://www.econbiz.de/10013236390
In dynamic environments, Q-learning is an adaptative rule that provides an estimate (a Q-value) of the continuation value associated with each alternative. A naive policy consists in always choosing the alternative with highest Q-value. We consider a family of Q-based policy rules that may...
Persistent link: https://www.econbiz.de/10014344942
In an intertemporal general equilibrium framework, we compare a Cournot equilibrium to the Walras equilibrium. The Cournot agents trade and invest less than the Walras agents. This generates an ineffciency which does not vanish as the number of Cournot agents tends to infinity. A larger number...
Persistent link: https://www.econbiz.de/10014103267
function competition. By numerical simulations, we also show that if the degree of product substitution is extremely low, then … the supply function competition can become a superior form of competition for the duopolistic producers, as well. However … competition can be lower than under the quantity competition in situations where the size of the demand uncertainty is below a …
Persistent link: https://www.econbiz.de/10012923733