Cournot Competition And Endogenous Firm Size

Topics:
Organization
Tags:
Adjustment,
New Jersey
Source:
Rutgers, State University of New Jersey

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Overview: The authors have studied the dynamics of firm size in a repeated Cournot game with unknown demand function. The firm was modeled as a type of artificial neural network. Each period it must learn to map environmental signals to both demand parameters and its rival's output choice. But this learning game is in the background, as the focus was on the endogenous adjustment of network size. The long-run behavior of firm/network size was investigated as a function of profits, rival's size, and the type of adjustment rules used.

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Format: PDF | Size: 290KB | Date: Jun 2005 | Pages: 26

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