Inexperienced and Experienced Players in an Oligopolistic Market Game with Minimal Information
Rosemarie Nagel, Universitat Pompeu Fabra
Nicolaas J. Vriend, Queen Mary and Westfield College, University of London
Industrial and Corporate Change, 1999, Vol. 8, No. 1, p. 41-65

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Abstract. We consider an oligopolistic market game, in which the players are competing firms in the same market of a homogeneous consumption good. The consumer side is represented by a fixed demand function. The firms decide how much to produce of a perishable consumption good, and they decide upon a number of information signals to be sent into the population in order to attract customers. Due to the minimal information provided, the players do not have a well-specified model of their environment. Given a simple model of adaptive behavior, which we showed in a previous paper explained the data relatively well, our main objective here is to analyze whether experienced players behave differently to inexperienced players.

J.E.L. classification codes. C72, C91, D83

Keywords. Market Game, Oligopoly, Adaptive Behavior, Experience, Learning

Nick Vriend,
Last modified 2012-12-07