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Imitation and belief learning in an oligopoly experiment. (English) Zbl 1046.91051

Summary: We examine the force of three types of behavioural dynamics in quantity-setting triopoly experiments: (1) mimicking the successful firm, (2) rules based on following the exemplary firm, and (3) rules based on belief learning. Theoretically, these three types of rules lead to the competitive, the collusive, and the Cournot-Nash outcome, respectively. In the experiment we employ three information treatments, each of which is hypothesized to be conducive to the force of one of the three dynamic rules. To a large extent, the results are consistent with the hypothesized relationships between treatments, behavioural rules, and outcomes.

MSC:

91B26 Auctions, bargaining, bidding and selling, and other market models
91A26 Rationality and learning in game theory
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