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.
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Paper provided by Flinders of South Australia - Discipline of Economics in its series Papers with number
179.
Length: 26 pages Date of creation: 2001 Date of revision: Handle: RePEc:fth:flinde:179
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Find related papers by JEL classification: D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly D41 - Microeconomics - - Market Structure and Pricing - - - Perfect Competition
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