Economics at your fingertips  

Through Trial & Error to Collusion

Steffen Huck (), Hans-Theo Normann () and Jörg Oechssler

Game Theory and Information from University Library of Munich, Germany

Abstract: In this note we study a very simple trial & error learning process in the context of a Cournot oligopoly. Without any knowledge of the payoff functions players increase, respectively decrease, their quantity by one unit as long as this leads to higher profits. We show that this process converges to a collusive outcome.

Keywords: learning; game theory; oligopoly; collusion (search for similar items in EconPapers)
JEL-codes: C72 L13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-evo, nep-gth and nep-mic
Date: 1998-11-19, Revised 1998-11-24
Note: Pages: 12; figure included in the second file
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link) (application/pdf) (application/postscript)

Related works:
Working Paper: Through trial & error to collusion (1999) Downloads
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:

Access Statistics for this paper

More papers in Game Theory and Information from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

Page updated 2019-12-04
Handle: RePEc:wpa:wuwpga:9811004