Anderhub, Vital Güth, Werner Kamecke, Ulrich Normann, Hans-Theo
Year of Publication:
Discussion Papers, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes 2001,10
In the heterogeneous experimental oligopoly markets of this paper, sellers first choose capacities and then prices. In equilibrium, capacities should correspond to the Cournot prediction. In the experimental data, given capacities, observed price setting behavior is in general consistent with the theory. Capacities converge above the Cournot level. Sellers rarely manage to cooperate.