Fonseca, Miguel A.; Normann, Hans-Theo - In: Journal of Institutional and Theoretical Economics (JITE) 169 (2013) 2, pp. 199-228
We conduct experiments testing the relationship between excess capacity and pricing in repeated Bertrand-Edgeworth duopolies and triopolies. We systematically vary the experimental markets between low excess capacity (suggesting monopoly) and no capacity constraints (suggesting perfect...