Author :
Kamarei, Hossein,Morrison, Clarence C.
Title of Article :
Some Experimental Testing of the Cournot-Nash Hypothesis in Small Group Rivalry Situations.
Title Of Periodical :
JOURNAL OF ECONOMIC BEHAVIOR AND ORGANIZATION
Descriptors :
Cournot-Nash Hypothesis,Expermental Testing,Small Group Rivalry Situations
Abstract :
This study parallels a previous study by Friedman and Hoggatt (1980) but uses "more realistic" information conditions. In addition to confirming the central tendency results of Friedman and Hoggatt, we find that in the three to six corporation range the number of corporations in the experiment seems to have no effect on the tendency to grope towards the Cournot_Nash solution. On the other hand, it seems clear that convergence to Cournot_Nash is more likely if the subjects are experienced and less likey the higher the Cournot_Nash markup over unit cost. Overall there is a strong tendency to converge to Cournot_Nash.
