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Heinrich-Heine-Universität Düsseldorf >
Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf >
DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/64548
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Fonseca, Miguel A. | | en_US |
| dc.contributor.author | | Normann, Hans-Theo | | en_US |
| dc.date.accessioned | | 2012-09-27 | | en_US |
| dc.date.accessioned | | 2012-09-28T12:59:37Z | | - |
| dc.date.available | | 2012-09-28T12:59:37Z | | - |
| dc.date.issued | | 2012 | | en_US |
| dc.identifier.isbn | | 978-3-86304-066-6 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/64548 | | - |
| dc.description.abstract | | We conduct experiments testing the relationship between excess capacity and pricing in repeated Bertrand-Edgeworth duopolies and triopolies. We systematically vary the experimental markets between low excess capacity (suggesting monopoly) and no capacity constraints (suggesting perfect competition). Controlling for the number of firms, higher production capacity leads to lower prices. However, the decline in prices as industry capacity rises is less pronounced than predicted by Nash equilibrium, and a model of myopic price adjustments has greater predictive power. With higher capacities, Edgeworth-cycle behavior becomes less pronounced, causing lower prices. Evidence for tacit collusion is limited and restricted to low-capacity duopolies. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | DICE Düsseldorf | | en_US |
| dc.relation.ispartofseries | | DICE Discussion Paper 67 | | en_US |
| dc.subject.jel | | C72 | | en_US |
| dc.subject.jel | | C90 | | en_US |
| dc.subject.jel | | D43 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | tacit collusion | | en_US |
| dc.subject.keyword | | excess capacity | | en_US |
| dc.subject.keyword | | Edgeworth cycles | | en_US |
| dc.title | | Excess capacity and pricing in Bertrand-Edgeworth markets: Experimental evidence | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 726566926 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE)
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