Internal conflict, market uniformity, and transparency in price competition between teams
We experimentally examine how the level of internal conflict, and whether such conflict is transparent to other teams, affects teams' ability to compete vis-à-vis each other, and, consequently, market outcomes. We find that internal conflict leads to (tacit) coordination on high prices in uniform private-pay duopolies, but places private-pay teams at a competitive disadvantage in mixed duopolies. Competition is softened by transparency in uniform markets, but intensified in mixed markets.
D43 - Oligopoly and Other Forms of Market Imperfection ; L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration ; C92 - Laboratory; Group Behavior