Aggregate Estimates of Reflexive Collective Behavior Dynamics in a Cournot Oligopoly Model

Abstract

This paper considers an oligopoly model with an arbitrary number of Cournot-reflexive agents under incomplete information in the classical case of linear cost and demand functions. Agents make decisions based on a collective behavior model. The problem of identifying convergence conditions to the model equilibrium is studied, with an emphasis placed on the trajectory of the sum of the action residuals of all agents. Aggregate estimates of this trajectory are obtained. They can be used to judge how the trajectory of each agent evolves towards the equilibrium.