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Article
Cournot vs. Walras in Dynamic Oligopolies with Memory
International Journal of Industrial Organization (2004)
  • Carlos Alós-Ferrer, University of Konstanz
Abstract

This paper explores the impact of memory in Cournot oligopolies where firms learn through imitation of success (as suggested in Alchian (1950) and modeled in Vega-Redondo (1997)). As long as memory includes at least one period, the long-run outcomes correspond to all the quantities in the interval between the Cournot quantity and the Walrasian one. There is a conceptual tension between the evolutionary stability associated to the Walrasian outcome (which relies on comparisons of simultaneous profits) and the stability of the Cournot-Nash equilibrium (derived from intertemporal comparisons of profits).

Keywords
  • Learning,
  • Mutation,
  • Cournot Oligopoly,
  • Memory
Disciplines
Publication Date
2004
Citation Information
Carlos Alós-Ferrer. "Cournot vs. Walras in Dynamic Oligopolies with Memory" International Journal of Industrial Organization Vol. 22 Iss. 2 (2004)
Available at: http://works.bepress.com/alos/7/