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- W2022533714 abstract "A reaction function is a contingency plan that specifies how a firm will react to a move made by its competition. This includes the classical Cournot reaction function. Our stochastic reaction functions are the rules by which firms revise their prior distributions on their competitors' sets of actions. The asymptotic stability of a class of stochastic reaction functions is examined in this paper. It is shown that there exists a class of reaction functions that are either asymptotically stable in the Cournot-Nash sense or asymptotically Pareto optimal. Our analysis does not rely on differentiability and other assumptions traditionally imposed in the literature." @default.
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- W2022533714 date "1978-08-01" @default.
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- W2022533714 title "Stochastic reaction functions in 2 × 2 duopoly" @default.
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- W2022533714 doi "https://doi.org/10.1016/0022-0531(78)90089-3" @default.
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