Template-Type: ReDIF-Paper 1.0
Title: Stability of the Cournot Process - Experimental Evidence 
Author-Name: Steffen Huck
Author-Name: Hans-Theo Normann
Author-Name: Jörg Oechssler 
Author-Email: 
Classification-JEL: C72, C92, L13 
Keywords: best reply process, Cournot oligopoly, learning experiments, imitation 
Abstract: We report results of experiments designed to test the predictions of the best reply process. In a Cournot oligopoly with four firms, the 
	best reply process should theoretically explode if demand and cost functions are linear. We find, however, no experimental evidence of such instability. 
	Moreover, we find no differences between a market which theoretically should not converge to Nash equilibrium and one which should converge 
	because of inertia. We investigate the power of several learning dynamics to explain this unpredicted stability. 
Note: 
Length: 20
Creation-Date: 2002-01	
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse1_2002.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse1_2002