search query: @author Davis, D. D. / total: 6
reference: 4 / 6
| Author: | Davis, D. D. |
| Title: | Advance production and Cournot outcomes: an experimental investigation |
| Journal: | Journal of Economic Behavior and Organization
1999 : SEP, VOL. 40:1, p. 59-79 |
| Index terms: | Markets Competition Production |
| Language: | eng |
| Abstract: | An experiment designed to assess the effects of advance-production decisions on posted-offer market performance is reported. Six of the 12 triopolies were conducted under standard posted-offer rules. In the remaining markets sellers made binding production commitments prior to posting prices, an alteration that shifts the unique stage-game Nash equilibrium from the competitive to the Cournot outcome. As predicted, advance-production decisions raised prices and lowered output. Nevertheless, stable Cournot outcomes were never observed. |
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