Oligopoly experimentation of learning with simulated markets

Abstract

Learning is investigated using experimental methods. Agents have no information about demand conditions. The same oligopoly market is finitely repeated, and the only link between successive markets is that agents acquire experience over time as the game is played. Adaptive as well as least squares learning are tested. The model of price adjustment followed by firms indicates that the non-cooperative Bertrand–Nash equilibrium constitutes an attractor to players' strategies.