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A dynamic Bertrand-duopoly model where price leadership emerges in equilibrium is developed. In the price leadership equilibrium, a firm leads price changes and its competitor always matches in the next period. The firms produce a homogeneous product and are identical except for the information...
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This article proposes a two-stage oligopoly model for the crude oil market. In a game of several Stackelberg leaders …
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-researched field in the experimental oligopoly literature. We provide results from an experiment that varies the number of firms as … do not capture observed behavior. Neither the mixed-strategy Nash equilibria of the underlying one-shot game nor, for the … supported by the data. In contrast to results from related experiments, behavior is largely more competitive than predicted by …
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This study provides a comprehensive picture of experimental Kreps-Scheinkman markets with capacity choice in the first stage and subsequent price competition at the second. We conduct seven different treatments of such markets, varying the number of firms, the demand rationing scheme, the...
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This study is the first to investigate the effect of demand rationing in experimental Bertrand-Edgeworth markets with fixed exogenous capacities. It is found that prices and profits are significantly higher under proportional than under efficient demand rationing. Moreover, the amount of...
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