Using Genetic Algorithms to Simulate the Evolution of an Oligopoly Game

Abstract. This paper extends the N-person IPD game into a more interesting game in economics, namely, the oligopoly game. Due to its market share dynamics, the oligopoly game is more complicated and is in general not an exact N-person IPD game. Using genetic algroithms, we simulated the oligopoly games under various settings. It is found that, even in the case of a three-oligopolist (three-player) game, collusive pricing (cooperation) is not the dominating result.

• Type: Conference
• Year: 1998
• Where: SEAL
• Authors: Shu-Heng Chen, Chih-Chi Ni
• Keywords: Exact N-person Ipd, Machine Learning, N-person IPD Game, Oligopoly Games, SEAL 1998