A market model is presented, in which firms and consumers differ in their market understanding. In the model, rational firms compete in probability distributions over consumers with bounded ability to grasp statistical data. Increased competition causes firms to increase their effort to...

We analyze a symmetric n-firm Cournot oligopoly with a heterogeneous population of optimizers and imitators. Imitators mimic the output decision of the most successful firms of the previous round à la Vega-Redondo (1997). Optimizers play a myopic best response to the opponents' previous output....

The literature on time-inconsistent preferences introduced sophisticated, naive and partially naive types of agents that represent different levels of awareness of their time inconsistency. This paper incorporates time-inconsistent players in a sequential bargaining model. Under the complete...