Dijkstra, P.T.; Haan, M.A.; Mulder, M. - Faculteit Economie en Bedrijfskunde, Rijksuniversiteit … - 2013
We present an experiment on yardstick competition. Experimental firms set cost levels in each period and can communicate with each other in an attempt to increase the regulated price. We find that when market shares are heterogeneous, collusion is least frequent and prices are lowest. The number...