Cooperation without Coordination: Signaling, Types and Tacit Collusion in Laboratory Oligopolies
AbstractWe study the effects of price signaling activity and underlying propensities to cooperate on tacit collusion in posted offer markets. The primary experiment consists of an extensively repeated baseline sequence and a 'forecast' sequence that adds to the baseline a forecasting game that allows identification of signaling intentions. Forecast sequence results indicate that signaling intentions considerably exceed those that are counted under a standard signal measure based on previous period prices. Nevertheless, we find essentially no correlation between either measure of signal volumes and collusive efficiency. A second experiment demonstrates that underlying seller propensities to cooperate more clearly affect collusiveness.
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Bibliographic InfoPaper provided by VCU School of Business, Department of Economics in its series Working Papers with number 0702.
Length: 28 pages
Date of creation: Mar 2007
Date of revision: Sep 2009
Experiments; Tacit Collusion; Price Signaling; Types;
Other versions of this item:
- Douglas Davis & Oleg Korenok & Robert Reilly, 2010. "Cooperation without coordination: signaling, types and tacit collusion in laboratory oligopolies," Experimental Economics, Springer, vol. 13(1), pages 45-65, March.
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-17 (All new papers)
- NEP-CBE-2007-03-17 (Cognitive & Behavioural Economics)
- NEP-COM-2007-03-17 (Industrial Competition)
- NEP-EXP-2007-03-17 (Experimental Economics)
- NEP-MIC-2007-03-17 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oleg Korenok).
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