Convergence of strategic behavior to price taking

Research output: Contribution to journalArticlepeer-review

Abstract

We address the following issue: what can be said about the degree of competition, in a set of markets with a large number of participants, when no information on the distribution of individual characteristics is available? Our main result is that the proportion of individuals whose strategic behavior differs substantially from price taking, converges to zero as the number of market participants becomes large, regardless of the distribution of characteristics. © 2008 Elsevier Inc. All rights reserved.
Original languageEnglish
Pages (from-to)234-241
Number of pages7
JournalGames and Economic Behavior
Volume65
Issue number1
DOIs
Publication statusPublished - Jan 2009

Keywords

  • Convergence
  • Price taking
  • Strategic behavior

Fingerprint

Dive into the research topics of 'Convergence of strategic behavior to price taking'. Together they form a unique fingerprint.

Cite this