A nonparametric approach to evolutionary oligopoly games: An application to the crude oil industry
Economic Modelling, 2021, vol. 101, issue C
In this paper, I use a non-parametric revealed preference approach to investigate the empirical content of an oligopoly, with a relative maximization setup wherein players have different cost functions to produce a homogeneous good. Moreover, I present an empirical application to the crude oil market and its main producers and compare the rejection rates of the standard Cournot, the perfect competition, and relative maximizing hypotheses. The results show that the relative maximization model better explains the behavior of the major oil producers than the best-reply and price-taking models.
Keywords: Nonparametric; Oil market; Relative payoff maximization; Revealed preference test (search for similar items in EconPapers)
JEL-codes: C61 D21 D22 L13 L20 Q40 (search for similar items in EconPapers)
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