Experimental Tests of Consciously Parallel Behaviour in Oligopoly
The purpose of this research is to examine, in experimental oligopoly markets, (a) whether parallel pricing patterns emerge when communication among players is limited to cheap talk announcements; (b) whether such pricing patterns, if they emerge, lead to payoffs that exceed those players would receive in Nash equilibrium of the one-shot game. Results indicate that announcements and price matching lead to margins that exceed those of static Nash equilibrium, while falling short of joint profit maximization.
|Date of creation:||Mar 1997|
|Publication status:||Published in: Louis Phlips (ed.): Applied Industrial Economics, Cambridge University Press, 1998, 123-151|
|Contact details of provider:|| Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark|
Phone: (0045) 35 32 30 54
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/cie/
More information through EDIRC
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.:
- Grether, David M & Plott, Charles R, 1984.
"The Effects of Market Practices in Oligopolistic Markets: An Experimental Examination of the Ethyl Case,"
Western Economic Association International, vol. 22(4), pages 479-507, October.
- Grether, David M. & Plott, Charles R., . "The Effects of Market Practices in Oligopolistic Markets: An Experimental Examination of the Ethyl Case," Working Papers 404, California Institute of Technology, Division of the Humanities and Social Sciences.
- Harrington, Joseph E, Jr, 1987. "Collusion in Multiproduct Oligopoly Games under a Finite Horizon," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 1-14, February.
- Maura P. Doyle & Christopher M. Snyder, 1999.
"Information Sharing and Competition in the Motor Vehicle Industry,"
Journal of Political Economy,
University of Chicago Press, vol. 107(6), pages 1326-1364, December.
- Maura P. Doyle & Christopher M. Snyder, 1997. "Information sharing and competition in the motor vehicle industry," Finance and Economics Discussion Series 1997-4, Board of Governors of the Federal Reserve System (U.S.).
- Stephen Martin, 1997. "Competition Policy: Publicity vs. Prohibition & Punishment," CIE Discussion Papers 1997-02, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Abbink, Klaus & Abdolkarim Sadrieh, 1995. "RatImage - research Assistance Toolbox for Computer-Aided Human Behavior Experiments," Discussion Paper Serie B 325, University of Bonn, Germany.
- Benson, Bruce L. & Faminow, M. D., 1988. "The impact of experience on prices and profits in experimental duopoly markets," Journal of Economic Behavior & Organization, Elsevier, vol. 9(4), pages 345-365, June.
- Cason, Timothy N., 1995. "Cheap talk price signaling in laboratory markets," Information Economics and Policy, Elsevier, vol. 7(2), pages 183-204, June.
- Mason, Charles F. & Phillips, Owen R. & Redington, Douglas B., 1991. "The role of gender in a non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 15(2), pages 215-235, March.
When requesting a correction, please mention this item's handle: RePEc:kud:kuieci:1997-07. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann)
If references are entirely missing, you can add them using this form.