Stochastic reaction functions in 2 × 2 duopoly

  title={Stochastic reaction functions in 2 × 2 duopoly},
  author={Arun P. Sanghvi},
Abstract A reaction function is a contingency plan that specifies how a firm will react to a move made by its competition. This includes the classical Cournot reaction function. Our stochastic reaction functions are the rules by which firms revise their prior distributions on their competitors' sets of actions. The asymptotic stability of a class of stochastic reaction functions is examined in this paper. It is shown that there exists a class of reaction functions that are either asymptotically… CONTINUE READING

Similar Papers

Loading similar papers…