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Re-matching, Information and Sequencing Effects in Posted Offer Markets

Author

Listed:
  • Douglas D. Davis

    () (Department of Economics, VCU School of Business)

  • Korenok Oleg

    () (Department of Economics, VCU School of Business)

  • Robert Reilly

    () (Department of Economics, VCU School of Business)

Abstract

This paper evaluates the effects of some standard procedural variations on outcomes in posted offer oligopoly experiments. Variations studied include the presence or absence of market information, the use of re-matching or fixed seller pairs and alterations in the order of sequencing. Experimental results indicate that such variations can have first order effects on outcomes. For this reason, we recommend that results in oligopoly experiments be carefully interpreted in light of the procedures selected.

Suggested Citation

  • Douglas D. Davis & Korenok Oleg & Robert Reilly, 2007. "Re-matching, Information and Sequencing Effects in Posted Offer Markets," Working Papers 0701, VCU School of Business, Department of Economics, revised Oct 2007.
  • Handle: RePEc:vcu:wpaper:0701
    as

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    File URL: http://www.people.vcu.edu/~dddavis/papers/Rematching/EXEC154R2.pdf
    File Function: Final version, 2007
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    References listed on IDEAS

    as
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    Cited by:

    1. Davis, Douglas, 2009. "Pure numbers effects, market power, and tacit collusion in posted offer markets," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 475-488, October.

    More about this item

    Keywords

    Market Experiments; Oligopoly; Re-Matching; Information; Market Concentration;

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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