Breeding competitive strategies
Management Science
Computational Economics - Special issue: Evolutionary processes in economics
Agent-Based Simulation of an Automatic Mitigation Procedure
HICSS '05 Proceedings of the Proceedings of the 38th Annual Hawaii International Conference on System Sciences (HICSS'05) - Track 3 - Volume 03
Handbook of Computational Economics, Volume 2: Agent-Based Computational Economics (Handbook of Computational Economics)
Advances in Artificial Economics: The Economy as a Complex Dynamic System (Lecture Notes in Economics and Mathematical Systems)
Robust Evolutionary Algorithm Design for Socio-economic Simulation
Computational Economics
Assessing the Quality of Pseudo-Random Number Generators
Computational Economics
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Classical oligopoly theory has strong analytical foundations but is weak in capturing the operating environment of oligopolists and the available knowledge they have for making decisions, areas in which the management literature is relevant. We use agent-based models to simulate the impact on firm profitability of policies that oligopolists can pursue when setting production levels. We develop an approach to analyzing simulation results that makes use of nonparametric statistical tests, taking advantage of the large amounts of data generated by simulations, and avoiding the assumption of normality that does not necessarily hold. Our results show that in a quantity game, a simple exploration rule, which we call Probe and Adjust, can find either the Cournot equilibrium or the monopoly solution depending on the measure of success chosen by the firms. These results shed light on how tacit collusion can develop within an oligopoly.