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Simulation of Cooperation for Price Competition in Oligopolies

  • Tzai-Der Wang
  • Colin Fyfe
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 4247)

Abstract

In this research, an agent-based simulation model for price competition in oligopolies is built and Genetic Algorithm is used to evolve the oligopolies’ decisions of price while facing the competitors in markets. The experimental results show two factors influencing the price competition situations and ‘given’ factor that competitor can not control leads strong influence on their decision of price. Total cooperation (Collusion to high prices) seems not to be achieved under the different parameter settings while many competitors involving in the market and a limitation of cooperation forms in which no effect forces the achievement of total cooperation.

Keywords

Price Competition Game Model Subjective Factor Perfect Competition External Customer 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Tzai-Der Wang
    • 1
  • Colin Fyfe
    • 2
  1. 1.Department of Industrial Engineering and ManagementCheng Shiu UniversityKaohsiung CountyTaiwan, ROC
  2. 2.Applied Computational Intelligence Research UnitThe University of PaisleyScotlandUK

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