setting behavior is in general consistent with the theory. Capacities converge above the Cournot level. Sellers rarely manage …In the heterogeneous experimental oligopoly markets of this paper, sellers first choose capacities and then prices. In … equilibrium, capacities should correspond to the Cournot prediction. In the experimental data, given capacities, observed price …

We examine the strategic behavior of leaders and followers in sequential duopoly experiments in which followers either … perfectly observe the leaders' actions or else observe nothing. Our experiments show that consistent with the theory, leaders …, followers try to predict leaders' quantities and react optimally. This suggests that followers view the symmetric Cournot …