Markets with imperfect competition do not induce a cost-minimizing allocation of production between firms. The market …'s ability to rationalize production is even more limited if costs are private information to firms. Merger in such markets … generate an efficiency gain associated with the pooling of information. Not only may costs be reduced, the price level and …

rational learning requires implausible initial information assumptions, therefore some form of bounded rationality has come … show some promise in common macro models. A new selection problem arises since differences in initial information and … learning methods give rise to many different equilibria, making economic modelling sensitive to assumptions on information and …