Stability of the Cournot Process - Experimental Evidence

Steffen Huck, Hans-Theo Normann and Jörg Oechssler

Experimental from University Library of Munich, Germany

Abstract: We report results of a series of experiments designed to test the stability of the best reply process. With linear demand and cost functions, the process is stable if and only if there are less than three firms in the market. However, we find no experimental evidence of such instability in a four firm oligopoly. Moreover, there are no differences between a market which theoretically should not converge to Nash equilibrium and one which should converge because of inertia.

JEL-codes: C72 L13 (search for similar items in EconPapers)
Date: 1997-07-22
New Economics Papers: this item is included in nep-exp and nep-gth
Note: Pages: 14 ; figures: included
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Stability of the Cournot process - experimental evidence (2002)
Working Paper: Stability of the Cournot Process - Experimental Evidence (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpex:9707002

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