Inexperienced and Experienced Players in an Oligopolistic Market Game with Minimal Information

We consider an oligopolistic market game, in which the players are competing firms in the same market of a homogeneous consumption good. The consumer side is represented by a fixed demand function. The firms decide how much to produce of a perishable consumption good, and they decide upon a number of information signals to be sent into the population in order to attract customers. Due to the minimal information provided, the players do not have a well-specified model of their environment. Given a simple model of adaptive behavior, which we showed in a previous paper explained the data relatively well, our main objective here is to analyze whether experienced players behave differently to inexperienced players.