Evaluating
Competative Strategies
CPM Report No.: 94-02
By: Scott Moss, Huw David Dixon and
Steve Wallis
Date: 1 September 1994
Published as:
Moss, S., Dixon, H. D. and Wallis, S. (1995): Evaluating Competative
Strategies. Intelligent Systems in Accounting, Finance and Management, 4,
245-258.
Abstract
This paper has three purposes. The first is to introduce a conception of
learning which is a natural extension of economists' representations of learning
and which is natural to develop using KBS technology. The second is to
demonstrate a particular form of KBS in which rule conditions and actions are
well formulated formulae of first-order predicate logic (FOPL). A consequent
feature of the use of such a KBS in modelling behaviour is that the simulation
results obtained from these models are no less analytical than those of pure
analytic models. The third purpose of this paper is to report an experimental
design for simulations of competative behaviour which eliminates implicit bias
in the selection of possible behaviours. The system is applied to the Cournot
duolopy model. We find that modest intelligence on the part of at least one
duopolist systematically increases the profits of both.
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