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I experimentally investigate an infinitely repeated market entry game with an informed incumbent firm who knows demand and an uninformed entrant firm who does not. The uninformed firm's profits each period serve as a signal about demand, but the informed firm may signal jam the uninformed firm...
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In a Markov game, players engage in a sequence of games determined by a Markov process. In this setting, this paper investigates the impact of varying the informativeness of public information, as defined by Blackwell 1951 and 1953, pertaining to the games that will be played in future periods....
Persistent link: https://www.econbiz.de/10013043852
In an infinitely repeated market entry game, an entrant does not know demand and actions are unobservedbut signaled via pro ts. The incumbent may choose a predatory price (a signal jam) when demand is high toyield negative pro ts to the entrant and induce exit. Efficiency is only possible for...
Persistent link: https://www.econbiz.de/10014348292