Jaakko Markkanen
@jaakkomarkkanen.bsky.social
Researcher at @EtlaNews. Interested in empirical industrial organization. Personal website: https://markkaj.github.io/
Neither algo guarantees a NE. However, we looked into this and (almost) won the lottery: Only a few entrants want to switch locations. Most of Finland was in a NE in the resulting market structure. We don't exactly know how and why. More work needed, if we find the time.
April 3, 2025 at 9:15 AM
Neither algo guarantees a NE. However, we looked into this and (almost) won the lottery: Only a few entrants want to switch locations. Most of Finland was in a NE in the resulting market structure. We don't exactly know how and why. More work needed, if we find the time.
We call it "backwards SME" (BSME). Same equilibrium conditions, way faster. Dumb idea, but kind of brilliant. Hope others find it useful too.
April 3, 2025 at 9:15 AM
We call it "backwards SME" (BSME). Same equilibrium conditions, way faster. Dumb idea, but kind of brilliant. Hope others find it useful too.
We first tried the "sequential myopic entry" (SME) algorithm from Seim & Waldfogel (AER 2013), but it was too slow. So we ran it backwards: start with full entry and let firms exit. Surprisingly, it worked.
April 3, 2025 at 9:15 AM
We first tried the "sequential myopic entry" (SME) algorithm from Seim & Waldfogel (AER 2013), but it was too slow. So we ran it backwards: start with full entry and let firms exit. Surprisingly, it worked.