Cost Structures and Nash Play in Repeated Cournot Games

A-Tier
Journal: Experimental Economics
Year: 2003
Volume: 6
Issue: 2
Pages: 209-226

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

This paper reports an experiment designed to assess the effects of a rotation in the marginal cost curve on convergence in a repeated Cournot triopoly. Increasing the cost curve's slope both reduces the serially-undominated set to the Nash prediction, and increases the peakedness of earnings. We observe higher rates of Nash equilibrium play in the design with the steeper marginal cost schedule, but only when participants are also rematched after each decision. Examination of response patterns suggests that the treatment with a steeper marginal cost curve and with a re-matching of participants across periods induces the selection of Nash Consistent responses. Copyright Kluwer Academic Publishers 2003

Technical Details

RePEc Handle
repec:kap:expeco:v:6:y:2003:i:2:p:209-226
Journal Field
Experimental
Author Count
3
Added to Database
2026-01-25