The paper considers a model of imitation in the context of Cournot oligopoly. Purely imitative behavior can lead to an outcome inconsistent with Nash equilibrium. The question is when we can reconcile imitation with the concept of Nash equilibrium. The paper extends purely imitative behavior in two ways. First, imperfect imitation is introduced. Second, a random matching and local interaction model is analyzed. Such variations in the imitative behavior improve efficiency and restore Nash equilibrium as the likely outcome of the dynamic imitation process.
|Place of Publication||Tilburg|
|Number of pages||20|
|Publication status||Published - 1999|
|Name||CentER Discussion Paper|
- Cournot oligopoly
- evolutionary games