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From the perspective of competitors, competition may be modeled as a prisoner’s dilemma. Setting the monopoly price is cooperation, undercutting is defection. Jointly, competitors are better off if both are faithful to a cartel. Individually, profit is highest if only the competitor(s) is...
Persistent link: https://www.econbiz.de/10014186597
expected. -- Oligopoly ; Collusion ; experiment ; Uncertainty ; negative externalities ; prisoner's dilemma …
Persistent link: https://www.econbiz.de/10008822475
We run a laboratory experiment with a two-person game with unique pure Nash equilibrium which is also the solution of …
Persistent link: https://www.econbiz.de/10011962034
This paper considers price competition in a duopoly with quality uncertainty. The established firm (the `incumbent …', prices signal the entrant's quality only in a two-sided separating equilibrium and are identical to the full information …
Persistent link: https://www.econbiz.de/10009781393
This paper reports 45 laboratory duopoly markets that examine the importance of information sharing in facilitating … information when possible to reduce their demand uncertainty, which led to output reductions in some demand states. Risk aversion … is a likely explanation for this sharing, but some sellers also appeared to employ a strategy of information concealment …
Persistent link: https://www.econbiz.de/10014213956
This paper reports 45 laboratory duopoly markets that examine the importance of information sharing in facilitating … information when possible to reduce their demand uncertainty, which led to output reductions in some demand states. Risk aversion … is a likely explanation for this sharing, but some sellers also appeared to employ a strategy of information concealment …
Persistent link: https://www.econbiz.de/10014213961
It is commonly assumed that friendship should generally benefit agents' ability to tacitly coordinate with others. However, this has never been tested on two "opposite poles" of coordination, namely, games of strategic complements and substitutes. We present an experimental study in which...
Persistent link: https://www.econbiz.de/10011817934
because of shifting demographics or of asymmetric information about preferences. Realistically distributions of consumer …
Persistent link: https://www.econbiz.de/10012724699
We provide an evolutionary foundation to evidence that in some situations humans maintain optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and maximize...
Persistent link: https://www.econbiz.de/10010366542
We provide an evolutionary foundation to evidence that in some situations humans maintain either optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and...
Persistent link: https://www.econbiz.de/10012101422