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Internal conflict, market uniformity, and transparency in price competition between teams

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  • Kurschilgen, Michael
  • Morell, Alexander
  • Weisel, Ori

Abstract

We experimentally examine how the level of internal conflict, and whether such conflict is transparent to other teams, affects teams' ability to compete vis-à-vis each other, and, consequently, market outcomes. We find that internal conflict leads to (tacit) coordination on high prices in uniform private-pay duopolies, but places private-pay teams at a competitive disadvantage in mixed duopolies. Competition is softened by transparency in uniform markets, but intensified in mixed markets.

Suggested Citation

  • Kurschilgen, Michael & Morell, Alexander & Weisel, Ori, 2017. "Internal conflict, market uniformity, and transparency in price competition between teams," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168057, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc17:168057
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    Cited by:

    1. Francesco Fallucchi & Enrique Fatas & Felix Koelle & Ori Weisel, 2018. "Not all Group Members are created Equal: Heterogeneous Abilities in Inter-group Contests," Discussion Papers 2018-06, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.

    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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