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Experimental Duopolies Under Price Guarantees

Listed author(s):
  • Gerardo Sabater

    ()

    (Economics - University Jaume I)

  • Nikolaos Georgantzis

    ()

    (Economics - UNIVERSIDAD DE GRANADA)

  • Enrique Fatas

    ()

    (LINEEX - EUniversity of valencia)

  • Mañez Castillejo Juan

    ()

    (Economia Aplicada II - Universidad de Valencia)

In a symmetric differentiated experimental duopoly we test the ability of Price Guarantees (PGs) to raise prices above the competitive levels. Different types of PGs ("aggressive" and "soft" price-beating and price-matching) are implemented either as an exogenously imposed market rule or as a business strategy. Our results show that PGs may lead close to the collusive outcome, depending on whether the interaction between duopolists is repeated and provided that the guarantee is not of the "aggressive" price-beating type.

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Paper provided by HAL in its series Post-Print with number hal-00732113.

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Date of creation: 14 Sep 2011
Publication status: Published in Applied Economics, Taylor & Francis (Routledge), 2011, 45 (01), pp.15-35. <10.1080/00036846.2011.568398>
Handle: RePEc:hal:journl:hal-00732113
DOI: 10.1080/00036846.2011.568398
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00732113
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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