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Cournot or Stackelberg competition? A survey on experimental evidence

  • Hildenbrand, Andreas

In this survey, I look into experimental studies on duopolistic quantity competition with homogeneous products and duopolistic price competition with heterogeneous products. The focus is on the sequence of competition. That is, I summarize and analyze experimental studies checking Cournot competition against Stackelberg competition. I find that while Stackelberg equilibrium outcomes are seldom under quantity competition, under price competition, the Stackelberg equilibrium prediction seems to be more appropriate. However, after discussing the experimental setups, I conclude that some methodological problems are present. Moreover, I make recommendations for further research.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24468.

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Date of creation: 17 Aug 2010
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Handle: RePEc:pra:mprapa:24468
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