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An individual evolutionary learning model meets Cournot

Author

Listed:
  • Jasmina Arifovic
  • Liang Dia
  • Nobuyuki Hanaki

Abstract

In this paper, we extend the individual evolutionary learning model by incorporating other-regarding considerations and apply the model to some Cournot games. Using the model fitted to the experimental data of a repeated 3-player Cournot game (with nonlinear cost and demand functions), we construct out-of-sample predictions regarding the ``feedback effects'' and ``number effects'' and test these using data gathered via newly conducted experiments. The prediction regarding the feedback effect is only partially confirmed, being observed for 3- and 4-player games but not the 2-player game. The prediction regarding the number effect is also partially confirmed in that while the model predicts the number effect to be observed with detailed and not aggregate feedback, the effect is observed with both types of feedback.

Suggested Citation

  • Jasmina Arifovic & Liang Dia & Nobuyuki Hanaki, 2023. "An individual evolutionary learning model meets Cournot," ISER Discussion Paper 1200, Institute of Social and Economic Research, Osaka University.
    • Handle: RePEc:dpr:wpaper:1200
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    File URL: https://www.iser.osaka-u.ac.jp/library/dp/2023/DP1200.pdf
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    References listed on IDEAS

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