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The effect of payoff tables on experimental oligopoly behavior

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  • Özgür Gürerk

    ()

  • Reinhard Selten

    ()

Abstract

We explore the effects of the provision of an information-processing instrument—payoff tables—on behavior in experimental oligopolies. In one experimental setting, subjects have access to payoff tables whereas in the other setting they have not. It turns out that this minor variation in presentation has non-negligible effects on participants’ behavior, particularly in the initial phase of the experiment. In the presence of payoff tables, subjects tend to be more cooperative. As a consequence, collusive behavior is more likely and quickly to occur. Copyright Economic Science Association 2012

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Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 15 (2012)
Issue (Month): 3 (September)
Pages: 499-509

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Handle: RePEc:kap:expeco:v:15:y:2012:i:3:p:499-509

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Web page: http://www.springerlink.com/link.asp?id=102888

Related research

Keywords: Collusion; Cournot oligopoly; Payoff tables; Bounded rationality; Framing; Presentation effect; D03; L13; C72; C92;

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Cited by:
  1. Jeannette Brosig-Koch & Heike Hennig-Schmidt & Nadja Kairies & Daniel Wiesen, 2013. "How to Improve Patient Care? – An Analysis of Capitation, Fee-for-Service, and Mixed Payment Schemes for Physicians," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0412, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Duersch, Peter & Eife, Thomas, 2013. "Price Competition in an Inflationary Environment," Working Papers 0547, University of Heidelberg, Department of Economics.
  3. Axel Sonntag & Daniel John Zizzo, 2014. "Institutional Authority and Collusion," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 14-02, School of Economics, University of East Anglia, Norwich, UK..

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