Satisficing and prior-free optimality in price competition: a theoretical and experimental analysis

摘要

On a heterogeneous experimental oligopoly market, sellers choose a price, specify a set-valued prior-free conjecture about the others’ behavior, and form their own pro?t-aspiration for each element of their conjecture. We formally de?ne the concepts of satis?cing and prior-free optimality and check if seller participants behave in accordance with them. We ?nd that seller participants are satis?cers, but fail to be "prior-free" optimal.