Bayer, Ralph-C; Ke, Changxia - Max-Planck-Institut für Steuerrecht und öffentliche … - 2011
Quantal Response Equilibrium (McKelvey and Palfrey 1995). Asymmetric price adjustment is caused by the buyers with adaptive … it is not well understood. In this paper, we show that, in contrast to the theoretical prediction, asymmetric price … adjustment to cost shocks, as well as price dispersion, arises in experimental Diamond (1971) markets. The analysis of individual …