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| Author: | Brandts, J. Guillen, P. |
| Title: | Collusion and fights in an experiment with price-setting firms and advance production |
| Journal: | Journal of Industrial Economics
2007 : SEP, VOL. 55:3, p. 453-473 |
| Index terms: | duopoly game theory market structure monopoly perishable goods price control |
| Language: | eng |
| Abstract: | This paper provides results from 50-round duopoly and triopoly experiments. In these experiments the firms make decisions repeatedly about the price and quantity of a perishable good in a situation in which each firm has enough capacity to cover whole demand. There's no equilibrium in the stage game in pure strategies, and the most markets result in monopolies or to collusion at the monopolistic price. In duopoly experiments the progress is faster than in triopoly experiments resulting in lower average price in markets with three companies in the course of time. In three firm markets consumer surplus is bigger, whereas efficiency stays lower. |
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