IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Is a “Firm” a Firm? A Stackelberg Experiment

  • Andreas Hildenbrand

    ()

    (University of Giessen)

Industrial organization is mainly concerned with the behavior of large firms. Experimental industrial organization therefore faces a problem: How can firms be brought into the laboratory? The main approach relies on framing: Call individuals “firms”! This experimental approach is not in line with modern industrial organization, according to which a firm’s market behavior is also determined by its organizational structure. In this paper, a Stackelberg experiment is considered in order to answer the question whether framing individual decision making as organizational decision making or implementing an organizational structure is more effective in generating profit-maximizing behavior. Firms are either represented by individuals or by teams. I find that teams’ quantity choices are more in line with the assumption of profit maximization than individuals’

If 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.

File URL: https://www.uni-marburg.de/fb02/makro/forschung/magkspapers/29-2012_hildenbrand.pdf
File Function: First version, 2012
Download Restriction: no

Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 201229.

as
in new window

Length: 39 pages
Date of creation: 2012
Date of revision:
Publication status: Forthcoming in
Handle: RePEc:mar:magkse:201229
Contact details of provider: Postal: Universitätsstraße 25, 35037 Marburg
Phone: 06421/28-1722
Fax: 06421/28-4858
Web page: http://www.uni-marburg.de/fb02/Email:


More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Muller, Wieland, 2006. "Allowing for two production periods in the Cournot duopoly: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 100-111, May.
  2. Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
  3. Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
  4. Huck, Steffen & Müller, Wieland & Normann, Hans-Theo, 1999. "To commit or not to commit: Endogenous timing in experimental duopoly markets," SFB 373 Discussion Papers 1999,38, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  5. Steffen Huck & Brian Wallace, 2002. "Reciprocal strategies and aspiration levels in a Cournot-Stackelberg experiment," Economics Bulletin, AccessEcon, vol. 3(3), pages 1-7.
  6. Gary Bornstein & Ilan Yaniv, 1998. "Individual and Group Behavior in the Ultimatum Game: Are Groups More “Rational†Players?," Experimental Economics, Springer, vol. 1(1), pages 101-108, June.
  7. Fonseca, M.A. & Müller, W. & Normann, H.T., 2005. "Endogenous Timing in Duopoly : Experimental Evidence," Discussion Paper 2005-77, Tilburg University, Center for Economic Research.
  8. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
  9. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
  10. Huck, Steffen & Müller, Wieland & Normann, Hans-Theo, 1999. "Stackelberg beats Cournot: On collusion and efficiency in experimental markets," SFB 373 Discussion Papers 1999,32, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  11. Wieland Mueller & Fangfang Tan, 2011. "Who acts more like a game theorist? Group and individual play in a sequential market game and the effect of the time horizon," Vienna Economics Papers 1111, University of Vienna, Department of Economics.
  12. Bühren, Christoph & Frank, Björn & Krabel, Stefan & Werner, Alexander, 2012. "Decision-making in competitive framings—Strategic behavior of chess players in mini-ultimatum game chess puzzles," Economics Letters, Elsevier, vol. 115(3), pages 356-358.
  13. Hildenbrand, Andreas, 2010. "Cournot or Stackelberg competition? A survey on experimental evidence," MPRA Paper 24468, University Library of Munich, Germany.
  14. Ulrich Kamecke, 1997. "note: Rotations: Matching Schemes that Efficiently Preserve the Best Reply Structure of a One Shot Game," International Journal of Game Theory, Springer, vol. 26(3), pages 409-417.
  15. Huck, Steffen & Normann, Hans-Theo & Oechssler, Jorg, 2004. "Two are few and four are many: number effects in experimental oligopolies," Journal of Economic Behavior & Organization, Elsevier, vol. 53(4), pages 435-446, April.
  16. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
  17. Gary Bornstein & David V. Budescu & Tamar Kugler & Reinhard Selten, 2002. "Repeated Price Competition Between Individuals and Between Teams," Discussion Paper Series dp303, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
  18. Suits, Daniel B, 1984. "Dummy Variables: Mechanics v. Interpretation," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 177-80, February.
  19. Raab, Philippe & Schipper, Burkhard C., 2009. "Cournot competition between teams: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 72(2), pages 691-702, November.
  20. Holt, Charles A, 1985. "An Experimental Test of the Consistent-Conjectures Hypothesis," American Economic Review, American Economic Association, vol. 75(3), pages 314-25, June.
  21. Max Albert & Andreas Hildenbrand, 2012. "Industrial organization in the laboratory," MAGKS Papers on Economics 201205, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  22. Normann, Hans-Theo & Ruffle, Bradley, 2011. "Introduction to the special issue on experiments in industrial organization," International Journal of Industrial Organization, Elsevier, vol. 29(1), pages 1-3, January.
  23. Gary Bornstein & Uri Gneezy, 2002. "Price Competition Between Teams," Experimental Economics, Springer, vol. 5(1), pages 29-38, June.
  24. repec:ner:tilbur:urn:nbn:nl:ui:12-175061 is not listed on IDEAS
  25. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November.
  26. repec:ebl:ecbull:v:3:y:2002:i:3:p:1-7 is not listed on IDEAS
  27. Miguel Fonseca & Steffen Huck & Hans-Theo Normann, 2005. "Playing Cournot although they shouldn’t," Economic Theory, Springer, vol. 25(3), pages 669-677, 04.
  28. repec:ner:tilbur:urn:nbn:nl:ui:12-193647 is not listed on IDEAS
  29. Engel, Christoph, 2010. "The behaviour of corporate actors: How much can we learn from the experimental literature?," Journal of Institutional Economics, Cambridge University Press, vol. 6(04), pages 445-475, December.
  30. repec:ner:tilbur:urn:nbn:nl:ui:12-112549 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mar:magkse:201229. 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: (Bernd Hayo)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.