A nonparametric approach to evolutionary oligopoly games: An application to the crude oil industry

Hamed M.Moghadam

Economic Modelling, 2021, vol. 101, issue C

Abstract: 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)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S026499932100136X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:101:y:2021:i:c:s026499932100136x

DOI: 10.1016/j.econmod.2021.105547

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().