Imitation and the evolution of Walrasian behavior: Theoretically fragile but behaviorally robust
نویسندگان
چکیده
A well-known result by Vega-Redondo implies that in symmetric Cournot oligopoly, imitation leads to the Walrasian outcome where price equals marginal cost. In this paper we show that this result is not robust to the slightest asymmetry in xed costs. Instead of obtaining the Walrasian outcome as unique prediction, every outcome where agents choose identical actions will be played some fraction of the time in the long run. We then conduct experiments to check this fragility. We obtain that, contrary to the theoretical prediction, the Walrasian outcome is still a good predictor of behavior. JEL codes: C72; C91; C92; D43; L13.
منابع مشابه
Submodularity and the evolution of Walrasian behavior
Vega-Redondo (1997) showed that imitation leads to the Walrasian outcome in Cournot Oligopoly. We generalize his result to aggregative quasi-submodular games. Examples are the Cournot Oligopoly, Bertrand games with differentiated complementary products, CommonPool Resource games, Rent-Seeking games and generalized Nash-Demand games. JEL-Classifications: C72, D21, D43, L13.
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عنوان ژورنال:
- J. Economic Theory
دوره 145 شماره
صفحات -
تاریخ انتشار 2010