Cournot competition and endogenous firm size

Francesco Saraceno, Jason Barr

Research output: Contribution to journalArticlepeer-review


The paper studies the dynamics of firm size in a repeated Cournot game with unknown demand function. We model the firm as a type of artificial neural network. Each period it must learn to map environmental signals to both a demand parameter and its rival's output choice. However, this learning game is in the background, as we focus on the endogenous adjustment of network size. We investigate the long-run evolution of firm/network size as a function of profits, rival's size, and the type of adjustment rules used.

Original languageEnglish (US)
Pages (from-to)615-638
Number of pages24
JournalJournal of Evolutionary Economics
Issue number5
StatePublished - Oct 2008

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Economics and Econometrics


  • Adjustment dynamics
  • Artificial neural networks
  • Cournot games
  • Firm size


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