Simulation of Cooperation for Price Competition in Oligopolies
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.
KeywordsPrice Competition Game Model Subjective Factor Perfect Competition External Customer
Unable to display preview. Download preview PDF.
- 2.Axelroad, R.: The Evolution of Cooperation, Penguin Books (1990)Google Scholar
- 4.Colman, A.M.: Game Theory and Experimental Games. Pergamon Press, Oxford (1982)Google Scholar
- 5.Holland, J.: Adaptation in Natural and Artificial Systems, University of Michigan, 2nd edn. MIT Press, Cambridge (1992)Google Scholar
- 7.Wang, T.D., Fyfe, C., Marney, J.P.: A Comparison of an Oligopoly Game and the N-iterated Prisoner’s Dilemma. In: The Fifth International Conference of the Society for Computational Economics (1999)Google Scholar