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

Advance Production, Inventories and Market Power: An Experimental Investigation

  • Douglas D. Davis

    ()

    (Department of Economics, VCU School of Business)

This paper reports an experiment conducted to assess the effects of alterations in production conditions and product durability on market power in Bertrand-Edgeworth duopolies. Experiment results indicate that advance production increases market power in the sense that mean transaction prices increase relative to static Nash equilibrium predictions for a baseline market. In a similar way, a simple inventory option reduces market power. We also find that both advance production and inventory carryover undermine a strong tendency toward tacit collusion observed in our baseline duopoly markets.

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: http://www.people.vcu.edu/~dddavis/papers/New%20Advance%20Production/AP_INV_DAVIS020311.pdf
File Function: Forthcoming in Economic Inquiry
Download Restriction: no

File URL: http://www.people.vcu.edu/~dddavis/papers/New%20Advance%20Production/AP_INV_APPENDICES.pdf
File Function: Appendices
Download Restriction: no

File URL: http://www.people.vcu.edu/~dddavis/papers/New%20Advance%20Production/DAVIS_020311_INSTRUCTIONS.pdf
File Function: Instructions
Download Restriction: no

Paper provided by VCU School of Business, Department of Economics in its series Working Papers with number 1001.

as
in new window

Length: 27 pages
Date of creation: Feb 2010
Date of revision: Jan 2011
Handle: RePEc:vcu:wpaper:1001
Contact details of provider: Postal: Box 844000, Richmond, VA 23284-4000
Phone: 804/828-1717
Fax: (804)828-8884
Web page: http://www.business.vcu.edu/economics

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

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:vcu:wpaper:1001. 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: (Oleg Korenok)

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.