Capacity Cjoices and Price Competition in Experimental Market

V. Anderhub, W. Guth, Ulrich Kamecke () and Hans-Theo Normann

Working Papers from Flinders of South Australia - Discipline of Economics

Abstract: In the heterogeneous experimental oligopoly markets of this paper, sellers first choose capacities and then prices. In equilibrium, capacities should correspond to the Cournot prediction. In the experimental data, given capacities, observed price setting behavior is in general consistent with the theory. Capacities converge above the Cournot level. Sellers rarely manage to cooperate.

Keywords: PRICING; COMPETITION; ECONOMIC MODELS (search for similar items in EconPapers)
JEL-codes: D41 D42 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2001
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Capacity Choices and Price Competition in Experimental Markets (2003)
Working Paper: Capacity choices and price competition in experimental markets (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:flinde:179

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