• Title of article

    The commitment effect in belief evolution

  • Author/Authors

    Thomas Gehrig، نويسنده , , Werner Güth، نويسنده , , Rene Levinsky، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2004
  • Pages
    4
  • From page
    163
  • To page
    166
  • Abstract
    In this note, we establish that rational demand expectations will typically not evolve in an evolutionary model. In an evolutionary model, beliefs act like a commitment device to more aggressive behavior. This commitment effect has the same direction for strategic substitutes and complements and fades away in large markets.
  • Keywords
    Commitment effect , Oligopolistic competition , Belief evolution
  • Journal title
    Economics Letters
  • Serial Year
    2004
  • Journal title
    Economics Letters
  • Record number

    435529