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Harrington, Joseph E. - 2002

Standard methods in the U.S. for calculating antitrust damages in price-fixing cases is shown to create a strategic … incentive for firms to price above the non-collusive price after the cartel has dissolved. This results in an overestimate of … the but for price and an underestimate of the level of damages. The extent of this upward bias in the but for price is …

Persistent link: https://www.econbiz.de/10010293464

Durable-goods oligopoly with secondary markets: Theory and an empirical application to the automobile market

Esteban, Susanna; Shum, Matthew - 2001

We examine the effects of durability on equilibrium producer behavior in the car market In this setting forward-looking producers take into account the effect that their current production decisions have on their current and future profits due to the existence of a secondary market First we...

Persistent link: https://www.econbiz.de/10010293469

Some Inequalities related to the analysis of electricity auctions

Hästö, Peter; Holmberg, Pär - 2005

Most balaning markets of electric power are organized as uniform-price auctions. In 2001, the balancing market of …

Persistent link: https://www.econbiz.de/10010321551

Ambiguity and social interaction

Eichberger, Jürgen; Kelsey, David H.; Schipper, Burkhard C. - 2005

We present a non-technical account of ambiguity in strategic games and show how it may be applied to economics and social sciences. Optimistic and pessimistic responses to ambiguity are formally modelled. We show that pessimism has the effect of increasing (decreasing) equilibrium prices under...

Persistent link: https://www.econbiz.de/10010274390

Competition and innovation: An experimental investigation

Darai, Donja; Sacco, Dario; Schmutzler, Armin - 2009

predicted by theory, an increase in the number of firms from two to four reduces investments. However, a positive effect is … observed for a switch from Cournot to Bertrand, even though theory predicts a negative effect in the four-player case. This …

Persistent link: https://www.econbiz.de/10010315529

Globalization and general worker training

Gersbach, Hans; Schmutzler, Armin - 2004

We examine how globalization affects firms incentives to train workers. In our model, firms invest in productivity-enhancing worker training before Cournot competition takes place. When two separated product markets become integrated and are thus replaced with a market with greater demand and...

Persistent link: https://www.econbiz.de/10010315570

An experiment on learning with limited information: Nonconvergence, experimentation cascades, and the advantage of being slow

Friedman, Eric; Shor, Mikhael; Shenker, Scott; Sopher, Barry - 2000

We present the results of an experiment on learning in a continuous-time low-information setting. For a Cournot oligopoly with differentiated products, a dominance solvable game, we find little evidence of convergence to the Nash equilibrium. In an asynchronous setting, play tends toward the...

Persistent link: https://www.econbiz.de/10010318349

Market power and information revelation in dynamic trading

Gottardi, Piero; Serrano, Roberto - 2002

We study a strategic model of dynamic trading where agents are asymmetrically informed over common value sources of uncertainty. There is a continuum of uninformed buyers and a finite number of sellers, some of them informed. When there is only one seller, full information revelation never...

Persistent link: https://www.econbiz.de/10010318890

Tacit collusion under interest rate fluctuations

Dal Bó, Pedro - 2002

discount factor changes over time, under both price and quantity competition, and I show that collusive prices and proÞts …

Persistent link: https://www.econbiz.de/10010318903