Article ID Journal Published Year Pages File Type
5128418 Operations Research Letters 2016 6 Pages PDF
Abstract

This paper develops a Cournot oligopoly best-reply dynamic with multi-order extrapolative expectations and examines the effect of these sophisticated expectations on the long-term equilibrium behavior. Interestingly enough, it demonstrates that more sophisticated expectations which require more effort for foresight should not necessarily lead to more stable equilibrium behavior than less sophisticated expectations which need less effort.

Related Topics
Physical Sciences and Engineering Mathematics Discrete Mathematics and Combinatorics
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