An Experimental Study of Adaptive Behavior in an Oligopolistic Market Game
Universitat Pompeu Fabra, Department of Economics Working Paper No. 230
Posted: 24 Jun 1998
We consider an oligopolistic market game, in which the players are competing firm 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. Our main objective is to characterize the adaptive behavior of the players in such a situation.
JEL Classification: C7, C9, D8
Suggested Citation: Suggested Citation