Satisficing and prior-free optimality in price competition: a theoretical and experimental analysis
- 2008-09-09
- słowo kluczowe
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Bounded rationality
Satisficing behavior
Triopoly
- streszczenie
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On a heterogeneous experimental oligopoly market, sellers choose a price, specify a set-valued prior-free conjecture about the others’ behavior, and form their own profit-aspiration for each element of their conjecture. We formally define the concepts of satisficing and prior-free optimality and check if seller participants behave in accordance with them. We find that seller participants are satisficers, but fail to be "prior-free" optimal.
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2008-067
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- experimental economics
- JEL-Classification for JER
- C92 - Laboratory, Group Behavior ; C72 - Noncooperative Games ; D43 - Oligopoly and Other Forms of Market Imperfection
