Abstract
| Original language | English |
|---|---|
| Place of Publication | Tilburg |
| Publisher | CentER, Center for Economic Research |
| Volume | 1997-12 |
| Publication status | Published - 1997 |
Publication series
| Name | CentER Discussion Paper |
|---|---|
| Volume | 1997-12 |
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Keywords
- noncooperative games
- duopoly
- organizational behavior
Cite this
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Indirect Evolution Versus Strategic Delegation : A Comparison of Two Approaches to Explaining Economic Institutions. / Dufwenberg, M.; Güth, W.
Tilburg : CentER, Center for Economic Research, 1997. (CentER Discussion Paper; Vol. 1997-12).Research output: Working paper › Discussion paper › Other research output
TY - UNPB
T1 - Indirect Evolution Versus Strategic Delegation
T2 - A Comparison of Two Approaches to Explaining Economic Institutions
AU - Dufwenberg, M.
AU - Güth, W.
PY - 1997
Y1 - 1997
N2 - The two major methods of explaining economic institutions, namely by strategic choices or by (indirect) evolution, are compared for the case of a homogenous quadratic duopoly market. Sellers either can provide incentives for their agents to care for sales (amounts) or evolve as sellers who care for sales in addition to profits. Whereas strategic delegation does not change the market results as compared to the usual duopoly solution, indirect evolution causes a more competitive behavior. Thus the case at hand suffices to demonstrate the difference between the two approaches in explaining economic institutions.
AB - The two major methods of explaining economic institutions, namely by strategic choices or by (indirect) evolution, are compared for the case of a homogenous quadratic duopoly market. Sellers either can provide incentives for their agents to care for sales (amounts) or evolve as sellers who care for sales in addition to profits. Whereas strategic delegation does not change the market results as compared to the usual duopoly solution, indirect evolution causes a more competitive behavior. Thus the case at hand suffices to demonstrate the difference between the two approaches in explaining economic institutions.
KW - noncooperative games
KW - duopoly
KW - organizational behavior
M3 - Discussion paper
VL - 1997-12
T3 - CentER Discussion Paper
BT - Indirect Evolution Versus Strategic Delegation
PB - CentER, Center for Economic Research
CY - Tilburg
ER -