In this experiment, we analyze strategic delegation in a Cournot duopoly. Owners can choose among two different …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is …

the number of competitors. We show that this may render horizontal mergers profitable and welfare-improving even if costs … are linear. The results help to reconcile theory with various empirical findings on mergers. -- efficient hedging …We propose a model in which mergers exert a more pronounced effect on the structure of a market than simply reducing …

The theory of industrial organization has experienced an impressive boom by using the methods of (non-cooperative) game … theory. The conclusions depend, however. crucially on subtle details of the market decision processes about which there exist … serve customers, but at higher costs when demand exceeds "capacity". Our model allows for preemption in "capacity" as well …

We investigate simultaneous and sequential price competition in duopoly markets with differentiated products. In both …, just as predicted by the theory, whereas average follower prices are not above average prices in the simultaneous market … simultaneous-move markets whereas first movers do not. As in theory, there is a significant first-mover disadvantage when firms …

leadership. Our data, however, does not confirm the theory. While Stackelberg equilibria are extremely rare we often observe …). In their duopoly game, firms can choose their quantities in one of two periods before the market clears. If a firm … firm can observe the other firm's period 1 action. Hamilton and Slutsky predict the emergence of endogenous Stackelberg …

We report on an experiment designed to compare Stackelberg and Cournot duopoly markets with quantity competition. For … each market we implement both a random matching and fixed-pairs version. Stackelberg markets yield, regardless of the … matching scheme, higher outputs than Cournot markets. Under random matching total quantities in Stackelberg markets are higher …

orientation ; heterogenous market ; duopoly …