Endogenous fluctuations under evolutionary pressure in Cournot competition

Endogenous fluctuations under evolutionary pressure in Cournot competition

Disclaimer/Complaints regulations If you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library: http://uba.uva.nl/en/contact, or a letter to: Library of ...

Cournot Competition under Uncertainty∗

We analyze Cournot competition under demand uncertainty. We show that under rather general assumptions, the game has no asymmetric equilibria but multiple symmetric equilibria. Multiplicity is caused by the requirement of nonnegative prices and remains an issue also for simple demand specifications, such as the linear case. We then show that uniqueness of equilibrium is guaranteed if uncertaint...

Welfare losses under Cournot competition

In a market for a homogeneous good where firms are identical, compete in quantities and produce with constant returns, the percentage of welfare losses (PWL) is small with as few as five competitors for a class of demand functions which includes linear and isoelastic cases. We study markets with positive fixed costs and asymmetric firms. We provide exact formulae of PWL and robust constructions...

Cournot Competition and Endogenous Firm Size∗

We model the firm as a type of artificial neural network that plays a repeated Cournot game. Each period the firm must learn to map environmental signals to both demand parameters and it’s rival’s output choice. In this paper, though, this Cournot game is in the ’background,’ as we focus on the endogenous adjustment of network size. We investigate the long-run behavior of firm/network size as a...

R&D subsidies under asymmetric Cournot competition