EconPapers    
Economics at your fingertips  
 

From Imitation to Collusion - A Comment

Jörg Oechssler, Alex Roomets and Stefan Roth

No 588, Working Papers from University of Heidelberg, Department of Economics

Abstract: In oligopoly, imitating the most successful competitor yields very competitive outcomes. This theoretical prediction has been confirmed experimentally by a number of studies. A recent paper by Friedman et al. (2015) qualifies those results in an interesting way: while they replicate the very competitive results for the first 25 to 50 periods, they show that when using a much longer time horizon of 1200 periods, results slowly turn to more and more collusive outcomes. We replicate their result for duopolies. However, with 4 firms none of our oligopolies becomes permanently collusive. Instead, the average quantity always stays above the Cournot-Nash equilibrium quantity. Thus, it seems that “four remain many” even with 1200 periods.

Keywords: imitation; experiment. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-exp
Date: 2015-04-14
Note: This paper is part of http://archiv.ub.uni-heidelberg.de/volltextserver/view/schriftenreihen/sr-3.html
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://nbn-resolving.de/urn/resolver.pl?urn=urn:nbn:de:bsz:16-heidok-185793 Frontdoor page on HeiDOK (text/html)
http://archiv.ub.uni-heidelberg.de/volltextserver/ ... 0Roth_2015_dp588.pdf (application/pdf)

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:awi:wpaper:0588

Access Statistics for this paper

More papers in Working Papers from University of Heidelberg, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Gabi Rauscher (). This e-mail address is bad, please contact .

 
Page updated 2019-04-08
Handle: RePEc:awi:wpaper:0588