Header

UZH-Logo

Maintenance Infos

Multiple behavioral rules in Cournot oligopolies


Alos-Ferrer, Carlos; Ritschel, Alexander (2021). Multiple behavioral rules in Cournot oligopolies. Journal of Economic Behavior & Organization, 183:250-267.

Abstract

We study intra-individual behavioral heterogeneity in an experimental Cournot oligopoly. Previous empirical results in this setting have demonstrated convergence to competitive outcomes, in agreement with theoretical predictions assuming that players imitate successful opponents. We postulate that players sometimes rely on imitation of successful behavior, and sometimes best reply to the actions of others. Testable predictions are obtained from a model allowing for multiple behavioral rules which accounts for differences in the cognitive nature of the underlying decision processes. Those include non-trivial response time interactions depending on whether the rules share a common prescription (alignment) or not (conflict), a classification which is ex ante observable. The results confirm the hypotheses and support the presence of multiple behavioral rules at the individual level.

Abstract

We study intra-individual behavioral heterogeneity in an experimental Cournot oligopoly. Previous empirical results in this setting have demonstrated convergence to competitive outcomes, in agreement with theoretical predictions assuming that players imitate successful opponents. We postulate that players sometimes rely on imitation of successful behavior, and sometimes best reply to the actions of others. Testable predictions are obtained from a model allowing for multiple behavioral rules which accounts for differences in the cognitive nature of the underlying decision processes. Those include non-trivial response time interactions depending on whether the rules share a common prescription (alignment) or not (conflict), a classification which is ex ante observable. The results confirm the hypotheses and support the presence of multiple behavioral rules at the individual level.

Statistics

Citations

Dimensions.ai Metrics

Altmetrics

Downloads

6 downloads since deposited on 02 Feb 2021
6 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Economics and Econometrics, Organizational Behavior and Human Resource Management, Cournot oligopoly, Imitation, Best reply, Multiple behavioral rules
Language:English
Date:March 2021
Deposited On:02 Feb 2021 16:50
Last Modified:02 Feb 2021 16:52
Publisher:Elsevier
ISSN:0167-2681
OA Status:Hybrid
Publisher DOI:https://doi.org/10.1016/j.jebo.2020.12.034

Download

Hybrid Open Access

Download PDF  'Multiple behavioral rules in Cournot oligopolies'.
Preview
Content: Published Version
Language: English
Filetype: PDF
Size: 911kB
View at publisher
Licence: Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)