Despite its empirical relevance, increasing returns to scale are understudied in experimental markets. We fill this gap by comparing two sharing rules in Bertrand duopolies with increasing returns: the symmetric sharing rule (where each of the two firms that set the same price serves half of the...

Stochastic uncertainty can cause difficult coordination problems that may hinder mutually beneficial cooperation. We propose a mechanism of ex-post voluntary transfers designed to circumvent these coordination problems and ask whether it can do so. To test this, we implement a controlled...