Abstract
For duopoly models in Chapter 5 we assumed that each duopolist who does not exactly know its rival’s marginal cost function and the true market demand function will perceive them subjectively. Oligopolists in Chapter 8 were assumed to perceive subjectively only the unknown market demand function. Notwithstanding their perceptions of the unknown marginal cost and/or market demand function, firms in both chapters were given no allowance for probabilistic consideration in choosing their optimal policies. Once they formed subjective estimates of the relevant function(s), no revision of estimates occurred. Subjective estimates were rather of a definite nature and probability distribution of the estimates was beyond consideration.KeywordsExpected ProfitOptimal OutputBayesian LearningIndustry OutputCournot EquilibriumThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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