Abstract
The common prior assumption justifies private beliefs as posterior probabilities when updating a common prior based on individual information. We dispose of the common prior assumption for a homogeneous oligopoly market with uncertain costs and firms entertaining arbitrary priors about other firms' cost-type. We show that true prior beliefs can not be evolutionarily stable when truly expected profit measures (reproductive) success.
Original language | English |
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Pages (from-to) | 843-852 |
Number of pages | 10 |
Journal | Journal of evolutionary economics |
Volume | 21 |
Issue number | 5 |
DOIs | |
Publication status | Published - Dec 2011 |
ASJC Scopus subject areas
- Economics and Econometrics
- Business, Management and Accounting(all)