Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5128418 | Operations Research Letters | 2016 | 6 Pages |
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
Authors
Xing Gao, Weijun Zhong, Chao Huang,