Title
Collected Papers (Lecture Notes in Economics & Mathematical Systems),Used
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This experimental study examines both spontaneous and strategically planned behavior of boundedly rational subjects in a dynamic duopoly situation. Spontaneous behavior is observed in gameplaying experiments where students from the University of Bonn have played the dynamic duopoly game by direct interaction via computer terminals. Strategically planned behavior is revealed in strategies developed by fortyfive academic economists from 12 countries. These strategies are played against each other in computer simulations. The most striking observation in both types of examination is the coexistence of cooperation and competition. Shortrun monopoly pricing emerges as the prevailing mode of cooperation in the planned strategies. However, the most successful strategies turn out to be moderately competitive. An evolutionary tournament suggests a longrun coexistence of competition and cooperation.
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