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来源类型 | Working Paper |
规范类型 | 报告 |
DOI | 10.3386/w11900 |
来源ID | Working Paper 11900 |
Markov Perfect Industry Dynamics with Many Firms | |
Gabriel Weintraub; C. Lanier Benkard; Ben Van Roy | |
发表日期 | 2005-12-26 |
出版年 | 2005 |
语种 | 英语 |
摘要 | We propose an approximation method for analyzing Ericson and Pakes (1995)-style dynamic models of imperfect competition. We develop a simple algorithm for computing an ``oblivious equilibrium,'' in which each firm is assumed to make decisions based only on its own state and knowledge of the long run average industry state, but where firms ignore current information about competitors' states. We prove that, as the market becomes large, if the equilibrium distribution of firm states obeys a certain ``light-tail'' condition, then oblivious equilibria closely approximate Markov perfect equilibria. We develop bounds that can be computed to assess the accuracy of the approximation for any given applied problem. Through computational experiments, we find that the method often generates useful approximations for industries with hundreds of firms and in some cases even tens of firms. |
主题 | Microeconomics ; Mathematical Tools ; Game Theory ; Industrial Organization ; Market Structure and Firm Performance |
URL | https://www.nber.org/papers/w11900 |
来源智库 | National Bureau of Economic Research (United States) |
引用统计 | |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/569551 |
推荐引用方式 GB/T 7714 | Gabriel Weintraub,C. Lanier Benkard,Ben Van Roy. Markov Perfect Industry Dynamics with Many Firms. 2005. |
条目包含的文件 | ||||||
文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
w11900.pdf(438KB) | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 |
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