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In capacity-then-price-setting games, soft capacity constraints are planned sales amounts where producing above capacity is possible but more costly. While the subgame perfect equilibrium predicts equal prices, experimental evidence often reveals price discrepancies. This failure to coordinate...
Persistent link: https://www.econbiz.de/10011976964
reveals that such intra-play communication after capacity but before price choices has a collusive effect only for capacity …
Persistent link: https://www.econbiz.de/10011944106