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The paper considers a simple oligopoly model where firms know their own and the average pay-off in the industry. Firms … choose decision rules for trading. The theory predicts that there are three types of Nash-equilibria in this game (Collusive …
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We argue that, in a simple setting, the relation between the intensity of competition and cost-reducing investment is U-shaped. We consider a two-stage game with cost-reducing investments followed by a linear differentiated Cournot duopoly. We first show that, except for firms that are much less...
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, frictions, general equilibrium, labour markets, multi-unit auctions, oligopoly markets, and prediction markets Focuses on the … literature that has helped economists best understand how markets operate Assesses the impact of developments in theory, policy … -- Acknowledgements -- Notes -- References -- 4 OLIGOPOLY EXPERIMENTS IN THE CURRENT MILLENNIUM -- 1. Introduction -- 2. Oligopoly …
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We run a market experiment where firms can choose not only their price but also whether to present comparable offers. They are faced with artificial demand from consumers who make mistakes when assessing the net value of products on the market. If some offers are comparable however, some...
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