Spatial Competition with Three Firms: An Experimental Study

The paper reports the results of an experimental study of the three firm location problem. We compare the subjects' behavior in the experiments with the symmetric mixed strategy Nash equilibrium calculated by Shaked (1982). Overall, the findings are consistent with the equilibrium prediction. However, the subjects' locations were significantly more dispersed than predicted by the theory.

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Year of publication:	1998
Authors:	Collins, R. ; Sherstyuk, K.
Institutions:	Department of Economics, Faculty of Business and Economics
Subject:	NASH EQUILIBRIUM \| COMPETITION

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Series:	Department of Economics - Working Papers Series.
Type of publication:	Book / Working Paper
Notes:	Number 631 38 pages
Classification:	R30 - Real Estate Markets, Spatial Production Analysis, and Firm Location. General ; C62 - Existence and Stability Conditions of Equilibrium
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005574837