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Simulation of Cooperation for Price Competition in Oligopolies

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Simulated Evolution and Learning (SEAL 2006)

Part of the book series: Lecture Notes in Computer Science ((LNTCS,volume 4247))

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Abstract

In this research, an agent-based simulation model for price competition in oligopolies is built and Genetic Algorithm is used to evolve the oligopolies’ decisions of price while facing the competitors in markets. The experimental results show two factors influencing the price competition situations and ‘given’ factor that competitor can not control leads strong influence on their decision of price. Total cooperation (Collusion to high prices) seems not to be achieved under the different parameter settings while many competitors involving in the market and a limitation of cooperation forms in which no effect forces the achievement of total cooperation.

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Author information

Authors and Affiliations

  1. Department of Industrial Engineering and Management, Cheng Shiu University, Kaohsiung County, Taiwan, ROC

    Tzai-Der Wang

  2. Applied Computational Intelligence Research Unit, The University of Paisley, Scotland, UK

    Colin Fyfe

Authors
  1. Tzai-Der Wang
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  2. Colin Fyfe
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Editor information

Editors and Affiliations

  1. Department of Industrial Engineering and Management, Cheng Shiu University, Kaohsiung County Taiwan, ROC

    Tzai-Der Wang

  2. School of Computer Science and information Technology, RMIT University, VIC 3001, Melbourne, Australia

    Xiaodong Li

  3. AI-ECON Research Center, Department of Economics, National Chengchi University, 11623, Taipei, Taiwan

    Shu-Heng Chen

  4. Department of Computer Science and Technology, University of Sci. & Tech. of China, 230026, Hefei, Anhui, P.R. China

    Xufa Wang

  5. School of Information Technology and Electrical Engineering, University of New South Wales, Australian Defence Force Academy, Canberra, Australia

    Hussein Abbass

  6. The Univertity of Tokyo, Japan

    Hitoshi Iba

  7. Department of Computer, University of Science and Technology of China, 230027, Hefei, China

    Guo-Liang Chen

  8. University of Birmingham, Birmingham, UK

    Xin Yao

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© 2006 Springer-Verlag Berlin Heidelberg

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Wang, TD., Fyfe, C. (2006). Simulation of Cooperation for Price Competition in Oligopolies. In: Wang, TD., et al. Simulated Evolution and Learning. SEAL 2006. Lecture Notes in Computer Science, vol 4247. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11903697_90

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  • DOI: https://doi.org/10.1007/11903697_90

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-47331-2

  • Online ISBN: 978-3-540-47332-9

  • eBook Packages: Computer ScienceComputer Science (R0)

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