Control delegation, information and beliefs in evolutionary oligopolies

摘要

In an evolutionary delegation game, we investigate the effects on market outputs of different levels of information about the way managers are compensated. When managers are informed about their opponents, the long-run configuration of the industry depends on market conditions. When managers are informed only of the current composition of the population, only profit maximizing firms survive, no matter what market condition prevails. However, if we further lower the level of information - by hiding the current composition of the industry- then we show how managers' beliefs affect the long run equilibrium.