English   español  
Please use this identifier to cite or link to this item: http://hdl.handle.net/10261/1865
Share/Impact:
Statistics
logo share SHARE   Add this article to your Mendeley library MendeleyBASE
Visualizar otros formatos: MARC | Dublin Core | RDF | ORE | MODS | METS | DIDL
Exportar a otros formatos:

Title

Price competition under cost uncertainty: A laboratory analysis

AuthorsAbbink, Klaus; Brandts, Jordi
KeywordsLaboratory experiments
Industrial organisation
Oligopoly
Price competition
Issue Date1-Nov-2002
SeriesUFAE and IAE Working Papers
550.02
AbstractWe study the relation between the number of firms and price-cost margins under price competition with uncertainty about competitors' costs. We present results of an experiment in which two, three and four identical firms repeatedly interact in this environment. In line with the theoretical prediction, market prices decrease with the number of firms, but on average stay above marginal costs. Pricing is less aggressive in duopolies than in triopolies and tetrapolies. However, independently from the number of firms, pricing is more aggressive than in the theoretical equilibrium. Both the absolute and the relative surpluses increase with the number of firms. Total surplus is close to the equilibrium level, since enhanced consumer surplus through lower prices is counteracted by occasional displacements of the most efficient firm in production.
DescriptionTrabajo publicado como artículo en Economic Inquiry 43(3): 636-648 (2005).-- http://dx.doi.org/10.1093/ei/cbi044
URIhttp://hdl.handle.net/10261/1865
Appears in Collections:(IAE) Informes y documentos de trabajo
Files in This Item:
File Description SizeFormat 
55002.pdf131,79 kBAdobe PDFThumbnail
View/Open
Show full item record
Review this work
 


WARNING: Items in Digital.CSIC are protected by copyright, with all rights reserved, unless otherwise indicated.