Consistent beliefs, learning and different equilibria in oligopolistic markets

• Gonzalo Fernández de Córdoba Martos ^[1]
  1. [1] European University Institute

     European University Institute

     Firenze, Italia

     
• Localización: Working papers = Documentos de trabajo: Serie AD, Nº. 16, 1996, págs. 1-32
• Idioma: inglés
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• Resumen

  • The aim of this paper is to show the relation among equilibria in models with different levels of rationality. The different levels of rationality are defined in terms of the number of iterations that a player can perform with a simple rule for updating beliefs. It is shown that the rule converges to the Nash equilibrium without any increase in the complexity of players.