We use laboratory experiments to examine the effect of firm size asymmetry on the emergence of price leadership in a capacity constrained price-setting duopoly. With discounting, the unique subgame perfect equilibrium of the timing game we analyze predicts that the large firm is an endogenous...

This study examines whether the content of buyer information and the timing of its dissemination affects seller market power. We construct laboratory markets with differentiated goods and costly buyer search in which sellers simultaneously post prices. The experiment varies the information on...

We use experimental methods to demonstrate the anti-competitive potential of price matching guarantees in both symmetric and asymmetric cost duopolies. Our findings establish that when costs are symmetric, price-matching guarantees significantly increase market prices. In markets with cost...

We examine how repeated interaction can facilitate coordinated turn-taking in a two-player infinitely repeated Volunteer's Dilemma. We conjecture that repetition creates an environment for players to coordinate on the Pareto efficient, but asymmetric pure strategy Nash equilibria of the stage...