Imitation in Cournot oligopolies with multiple markets

B-Tier
Journal: Economic Theory
Year: 2015
Volume: 60
Issue: 3
Pages: 567-587

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper analyzes imitation dynamics in Cournot oligopolies when firms imitate both rivaling firms and firms in other markets. The resulting tension between relative and absolute performance leads to a unique prediction strictly between the Nash equilibrium and perfectly competitive outcomes, which is fully characterized by a simple formula. The outcome becomes less competitive as the number of markets increases, i.e., as firms receive more information about firms in other markets. A link with relative payoff maximization is provided. An extension of the benchmark model reveals that sophisticated firms imitating across asymmetric markets converge to a related but somewhat less competitive outcome. Copyright Springer-Verlag Berlin Heidelberg 2015

Technical Details

RePEc Handle
repec:spr:joecth:v:60:y:2015:i:3:p:567-587
Journal Field
Theory
Author Count
1
Added to Database
2026-02-02