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Bertrand colludes more than Cournot

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  • Sigrid Suetens

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  • Jan Potters

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Abstract

On the basis of evidence of past oligopoly experiments, we argue that there is often significantly more tacit collusion in Bertrand price-choice than in Cournot quantity-choice markets. Copyright Economic Science Association 2007

Suggested Citation

  • Sigrid Suetens & Jan Potters, 2007. "Bertrand colludes more than Cournot," Experimental Economics, Springer;Economic Science Association, vol. 10(1), pages 71-77, March.
  • Handle: RePEc:kap:expeco:v:10:y:2007:i:1:p:71-77 DOI: 10.1007/s10683-006-9132-2
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    References listed on IDEAS

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    1. Huck, Steffen & Normann, Hans-Theo & Oechssler, Jorg, 2000. "Does information about competitors' actions increase or decrease competition in experimental oligopoly markets?," International Journal of Industrial Organization, Elsevier, vol. 18(1), pages 39-57, January.
    2. Jan Potters & Sigrid Suetens, 2009. "Cooperation in Experimental Games of Strategic Complements and Substitutes," Review of Economic Studies, Oxford University Press, vol. 76(3), pages 1125-1147.
    3. van Damme, E.E.C. & Potters, J.J.M. & Rockenbach, B. & Sadrieh, A., 2003. "Collusion under Yardstick Competition : An Experimental Study," Discussion Paper 2003-009, Tilburg University, Tilburg Law and Economic Center.
    4. Rotemberg, Julio J, 1994. "Human Relations in the Workplace," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 684-717, August.
    5. Martin, Stephen, 1996. "R & D joint ventures and tacit product market collusion," European Journal of Political Economy, Elsevier, vol. 11(4), pages 733-741, April.
    6. Potters, Jan & Rockenbach, Bettina & Sadrieh, Abdolkarim & van Damme, Eric, 2004. "Collusion under yardstick competition: an experimental study," International Journal of Industrial Organization, Elsevier, vol. 22(7), pages 1017-1038, September.
    7. Altavilla, Carlo & Luini, Luigi & Sbriglia, Patrizia, 2006. "Social learning in market games," Journal of Economic Behavior & Organization, Elsevier, pages 632-652.
    8. Jorge Restrepo & Michael Spagat & Juan Vargas, 2004. "The Dynamics of the Columbian Civil Conflict: A New Dataset," Homo Oeconomicus, Institute of SocioEconomics, pages 396-429.
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    Citations

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    Cited by:

    1. Tong Zhang & B. Brorsen, 2011. "Oligopoly firms with quantity-price strategic decisions," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 6(2), pages 157-170, November.
    2. Brañas-Garza, Pablo & Espinosa, María Paz & Rey-Biel, Pedro, 2011. "Travelers’ types," Journal of Economic Behavior & Organization, Elsevier, pages 25-36.
      • Pablo Brañas-Garza & Maréa Paz & Pedro Rey-Biel, "undated". "Travelers' Types," Working Papers 407, Barcelona Graduate School of Economics.
      • Pablo Brañas-Garza & María Paz Espinosa & Pedro Rey-Biel, 2011. "Travelers' Types," Post-Print hal-00978260, HAL.
      • Brañas Garza, Pablo & Espinosa Alejos, María Paz & Rey Biel, Pedro, 2010. "Travellers' Types," DFAEII Working Papers 2010-03, University of the Basque Country - Department of Foundations of Economic Analysis II.
    3. Bosworth, Steven & Singer, Tania & Snower, Dennis J., 2016. "Cooperation, motivation and social balance," Kiel Working Papers 2023, Kiel Institute for the World Economy (IfW).
    4. Andreas Nicklisch, 2008. "Semi-collusive advertising and pricing in experimental duopolies," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2008_25, Max Planck Institute for Research on Collective Goods.
    5. Aghion, Philippe & Bechtold, Stefan & Cassar, Lea & Herz, Holger, 2014. "The Causal Effects of Competition on Innovation: Experimental Evidence," Scholarly Articles 27738688, Harvard University Department of Economics.
    6. 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.
    7. Steven J. Bosworth & Tania Singer & Dennis Snower, 2016. "Cooperation, Motivation and Social Balance," CESifo Working Paper Series 5763, CESifo Group Munich.
    8. Lisa Anderson & Beth Freeborn & Jason Hulbert, 2012. "Risk Aversion and Tacit Collusion in a Bertrand Duopoly Experiment," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(1), pages 37-50, February.
    9. Jan Potters & Sigrid Suetens, 2009. "Cooperation in Experimental Games of Strategic Complements and Substitutes," Review of Economic Studies, Oxford University Press, vol. 76(3), pages 1125-1147.
    10. Miettinen, Topi, 2013. "Promises and conventions – An approach to pre-play agreements," Games and Economic Behavior, Elsevier, vol. 80(C), pages 68-84.
    11. repec:kap:expeco:v:20:y:2017:i:4:d:10.1007_s10683-017-9517-4 is not listed on IDEAS
    12. Hans-Theo Normann & Brian Wallace, 2012. "The impact of the termination rule on cooperation in a prisoner’s dilemma experiment," International Journal of Game Theory, Springer;Game Theory Society, pages 707-718.
    13. Goodwin, David & Mestelman, Stuart, 2010. "A note comparing the capacity setting performance of the Kreps-Scheinkman duopoly model with the Cournot duopoly model in a laboratory setting," International Journal of Industrial Organization, Elsevier, vol. 28(5), pages 522-525, September.
    14. Bosworth, Steven J. & Singer, Tania & Snower, Dennis J., 2016. "Cooperation, motivation and social balance," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PB), pages 72-94.
    15. Philippe Gillen & Alexander Rasch & Achim Wambach & Peter Werner, 2016. "Bid pooling in reverse multi-unit Dutch auctions: an experimental investigation," Theory and Decision, Springer, pages 511-534.
    16. Bosworth, Steven & Singer, Tania & Snower, Dennis J., 2016. "Cooperation, Motivation and Social Balance," CEPR Discussion Papers 11131, C.E.P.R. Discussion Papers.
    17. Minas Vlassis & Maria Varvataki, 2014. "On the Mode of Competition as a Collusive Perspective in Unionized Oligopoly," Working Papers 1408, University of Crete, Department of Economics.
    18. Bosworth, Steven J. & Singer, Tania & Snower, Dennis J., 2016. "Cooperation, Motivation and Social Balance," IZA Discussion Papers 9703, Institute for the Study of Labor (IZA).

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