DAI, Darong; SHEN, Kunrong - In: Theoretical and Applied Economics XVIII(2014) (2014) 1(590), pp. 7-26
This paper employs the evolutionary dynamics driven by the Moran process (a special birth-death process) to investigate endogenous cartel formation from the perspective of stochastic evolution of the underlying industry. A Prisoner’s Dilemma game is derived based on the Cournot competition...