Type
Article
Titre
Cournot competition and endogenous firm size
Auteur(s)
SARACENO Francesco - Observatoire français des conjonctures économiques (Auteur)
BARR Jason - Rutgers Department of Economics (Auteur)
Éditeur
DE : Springer
Volume
18
Numéro
5
Pages
615 - 638 p.
ISSN
09369937
Mots clés
Firm size, Adjustment dynamics, Artificial neural networks, Cournot games
Résumé
EN
The paper studies the dynamics of firm size in a repeated Cournot game with unknown demand function. We model the firm as a type of artificial neural network. Each period it must learn to map environmental signals to both a demand parameter and its rival’s output choice. However, this learning game is in the background, as we focus on the endogenous adjustment of network size. We investigate the long-run evolution of firm/network size as a function of profits, rival’s size, and the type of adjustment rules used.
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