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Table 11 Prices, demands and profits. Simulation of Gabszewicz and Wauthy’s model

From: Agent-based models and industrial organization theory. A price-competition algorithm for agent-based models based on Game Theory

Equilibria

Passive beliefs

Responsive beliefs

\(\epsilon = 0.1\)

\(P=x=\Pi =0\)

\(P=0.21\) \(x=0.698\) \(\Pi =0.293\)

\(\epsilon = 0.05\)

\(P=x=\Pi =0\)

\(P=0.21\) \(x=0.647\) \(\Pi =0.291\)

\(\epsilon = 0.01\)

\(P=x=\Pi =0\)

\(P=0.24\) \(x=0.599\) \(\Pi =0.287\)

\(\epsilon = 0.005\)

\(P=x=\Pi =0\)

\(P=0.22\) \(x=0.672\) \(\Pi =0.296\)

\(\epsilon = 0.001\)

\(P=0.215\)

\(x=0.685\)

\(\Pi =0.294\)

\(P=0.136\) \(x=0.8375\) \(\Pi =0.228\)