Showing 1 - 10 of 112
We analyze the pricing behavior of firms when explicit partial cartels have formed in experimental markets through communication. Using a repeated, asymmetric capacity constraint price game, we show that, in line with theory, a partial cartel is sufficient to increase market prices for all...
Persistent link: https://www.econbiz.de/10011897162
the literature in industrial economics neglects individuals' incentives to form cartels. Although oligopoly experiments …
Persistent link: https://www.econbiz.de/10012886259
This paper investigates the collusive and competitive effects of algorithmic price recommendations on market outcomes. These recommendations are often non-binding and common in many markets, especially on online platforms. We develop a theoretical framework and derive two algorithms that...
Persistent link: https://www.econbiz.de/10014442786
Consumer switching costs cause the market demand of consumers who already bought a supplier's product to be less elastic while they simultaneously increase competition for new consumers. I study the effect of this twofold pricing incentive on firms' price setting behavior in a 2x2 factorial...
Persistent link: https://www.econbiz.de/10011892961
We analyze the impact of product bundling in experimental markets. One firm has monopoly power in a first market but competes with another firm à la Cournot in a second market. We compare treatments where the multi-product firm (i) always bundles, (ii) never bundles, and (iii) chooses whether...
Persistent link: https://www.econbiz.de/10010204789
; International Oligopoly ; Uniform Wages …
Persistent link: https://www.econbiz.de/10009501877
In a two-tier oligopoly, where the downstream firms are locked in pair-wise exclusive relationships with their upstream …
Persistent link: https://www.econbiz.de/10010205412
One key problem regarding the external validity of laboratory experiments is their duration: while economic … interactions out in the field are often lengthy processes, typical lab experiments only last for an hour or two. To address this …
Persistent link: https://www.econbiz.de/10009775683
than under a cross-border merger outcome. -- Unionization ; International Oligopoly ; Endogenous Mergers ; Countervailing …
Persistent link: https://www.econbiz.de/10009725245
This paper demonstrates that the standard conclusions regarding the comparison of Cournot and Bertrand competition are reversed in a vertically related market with upstream monopoly and trading via two-part tariffs. In such a market, downstream Cournot competition yields higher output, lower...
Persistent link: https://www.econbiz.de/10010351502