 Evolutionary competition between boundedly rational behavioral rules in oligopoly gamesLorenzo Cerboni Baiardi, Fabio Lamantia and Davide Radi Chaos, Solitons & Fractals, 2015, vol. 79, issue C, 204-225 Abstract: In this paper, we propose an evolutionary model of oligopoly competition where agents can select between different behavioral rules to make decisions on productions. We formalize the model as a general class of evolutionary oligopoly games and then we consider an example with two specific rules, namely Local Monopolistic Approximation and Gradient dynamics. We provide several results on the global dynamic properties of the model, showing that in some cases the attractor of the system may belong to an invariant plane where only one behavioral rule is adopted (monomorphic state). The attractors on the invariant planes can be either strong attractors or weak attractors. However, we also explain why the system can be in a state of Evolutionary Stable Heterogeneity, where it is more profitable for the agents to employ both heuristics in the long term (polymorphic state). Keywords: Oligopoly; Local Monopolistic Approximation; Gradient dynamics; Bounded rationality; Evolutionary games (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:chsofr:v:79:y:2015:i:c:p:204-225 DOI: 10.1016/j.chaos.2015.07.011 Access Statistics for this article Chaos, Solitons & Fractals is currently edited by Stefano Boccaletti and Stelios Bekiros More articles in Chaos, Solitons & Fractals from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.