How Much Collusion. A Meta-Analysis On Oligopoly Experiments
AbstractOligopoly has been among the first topics in the experimental economics. Over half a century, some 150 papers have been published. Each individual paper was interested in demonstrating one effect. But in order to do so, experimenters had to specify many more parameters. That way they have generated a huge body of evidence, untapped thus far. This meta-analysis makes this evidence available. More than 100 of the papers lend themselves to calculating an index of collusion. The data bank behind this paper covers some 700 different settings. The experimental results may be normalised as a percentage of the span between the Walrasian and the Pareto outcomes. The same way, results may be expressed as a percentage of the distance between the Nash and the Pareto outcomes. For each and every of the parameters, these two indices make it possible to answer two questions: how far is the market outcome away from the competitive equilibrium? And how good is the Nash prediction? Most importantly, however, the meta-analysis sheds light on how features of the experimental setting interact with each other. Most main effects and many interaction effects are indeed statistically significant.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2006_27.
Length: 62 pages
Date of creation: Dec 2006
Date of revision:
oligopoly; collusion; unilateral effect; experiment;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-02 (All new papers)
- NEP-COM-2007-01-02 (Industrial Competition)
- NEP-EXP-2007-01-02 (Experimental Economics)
- NEP-IND-2007-01-02 (Industrial Organization)
- NEP-LAW-2007-01-02 (Law & Economics)
- NEP-MIC-2007-01-02 (Microeconomics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christoph Engel, 2011.
"Dictator games: a meta study,"
Springer, vol. 14(4), pages 583-610, November.
- Christoph Engel, 2010. "Dictator Games: A Meta Study," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2010_07, Max Planck Institute for Research on Collective Goods, revised Jan 2011.
- Ottone, Stefania & Ponzano, Ferruccio, 2010. "Competition and cooperation in markets. The experimental case of a winner-take-all setting," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 163-170, April.
- Douglas D. Davis & Korenok Oleg & Robert Reilly, 2007.
"Re-matching, Information and Sequencing Effects in Posted Offer Markets,"
0701, VCU School of Business, Department of Economics, revised Oct 2007.
- Douglas Davis & Oleg Korenok & Robert Reilly, 2009. "Re-matching, information and sequencing effects in posted offer markets," Experimental Economics, Springer, vol. 12(1), pages 65-86, March.
- Christoph Engel & Lilia Zhurakhovska, 2012. "Harm on an Innocent Outsider as a Lubricant of Cooperation – An Experiment," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2012_02, Max Planck Institute for Research on Collective Goods.
- Argenton, Cédric & Müller, Wieland, 2012. "Collusion in experimental Bertrand duopolies with convex costs: The role of cost asymmetry," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 508-517.
- Doruk Iris & Luís Santos-Pinto, 2008.
"Tacit Collusion under Fairness and Reciprocity,"
Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP)
09.03, Université de Lausanne, Faculté des HEC, DEEP.
- Nicholas Wilson, 2012. "Shock to the System: Prevention of Mother-to-Child Transmission of HIV and Child Mortality," Department of Economics Working Papers 2012-03, Department of Economics, Williams College, revised Jul 2013.
- Christoph Engel & Lilia Zhurakhovska, 2011. "Oligopoly as a Socially Embedded Dilemma. An Experiment," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2011_01, Max Planck Institute for Research on Collective Goods.
- Krämer, Jan & Vogelsang, Ingo, 2012. "Co-investments and tacit collusion in regulated network industries: Experimental evidence," 23rd European Regional ITS Conference, Vienna 2012 60389, International Telecommunications Society (ITS).
- Joseph E. Harrington, Jr., 2012. "A Theory of Tacit Collusion," Economics Working Paper Archive 588, The Johns Hopkins University,Department of Economics.
- Schubert, Jens, 2013. "The Impact of Forward Trading on Tacit Collusion: Experimental Evidence," MPRA Paper 43768, University Library of Munich, Germany.
- Daniel Cracau & Benjamin Franz, 2012. "An experimental study of mixed strategy equilibria in simultaneous price-quantity games," FEMM Working Papers 120017, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
- Joseph E. Harrington, Jr., 2012. "Evaluating Mergers for Coordinated Effects and the Role of 'Parallel Accommodating Conduct'," Economics Working Paper Archive 601, The Johns Hopkins University,Department of Economics.
- Christoph Engel & Bettina Rockenbach, 2009. "We Are Not Alone: The Impact of Externalities on Public Good Provision," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2009_29, Max Planck Institute for Research on Collective Goods, revised May 2011.
- Davis, Douglas, 2011.
"Behavioral convergence properties of Cournot and Bertrand markets: An experimental analysis,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 80(3), pages 443-458.
- Douglas D. Davis, 2008. "Behavioral Convergence Properties of Cournot and Bertrand Markets: An Experimental Analysis," Working Papers 0808, VCU School of Business, Department of Economics, revised Jan 2011.
- Andreas Nicklisch, 2008. "Semi-collusive advertising and pricing in experimental duopolies," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2008_25, Max Planck Institute for Research on Collective Goods.
- Lisa Anderson & Beth Freeborn & Jason Hulbert, 2012.
"Risk Aversion and Tacit Collusion in a Bertrand Duopoly Experiment,"
Review of Industrial Organization,
Springer, vol. 40(1), pages 37-50, February.
- Lisa R. Anderson & Beth A. Freeborn & Jason P. Hulbert, 2009. "Risk Aversion and Tacit Collusion in a Bertrand Duopoly Experiment," Working Papers 84, Department of Economics, College of William and Mary.
- Duersch, Peter & Eife, Thomas, 2013. "Price Competition in an Inflationary Environment," Working Papers 0547, University of Heidelberg, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marc Martin).
If references are entirely missing, you can add them using this form.