Price Leadership and Unequal Market Sharing

Peter Dijkstra

No 14013-EEF, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

Abstract: We consider experimental markets of repeated homogeneous price-setting duopolies. We investigate the effect on collusion of sequential versus simultaneous price setting. We also examine the effect on collusion of changes in the size of each subject's market share in case both subjects set the same price. Our results show that sequential price setting compared with simultaneous price setting facilitates collusion, if subjects have equal market shares or if the follower has the larger market share. With sequential price setting, we find more collusion if subjects have equal market shares rather than unequal market shares. We observe more collusion if the follower has the larger market share than if the follower has the smaller market share.

Date: 2014
New Economics Papers: this item is included in nep-com, nep-exp and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/11370/943350d4-b1c9-46ff-87cd-cec0ee1f8b72 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://hdl.handle.net/11370/943350d4-b1c9-46ff-87cd-cec0ee1f8b72 [302 Found]--> https://research.rug.nl/en/publications/943350d4-b1c9-46ff-87cd-cec0ee1f8b72 [301 Moved Permanently]--> https://research.rug.nl/en/publications/price-leadership-and-unequal-market-sharing-collusion-in-experime)

Related works:
Working Paper: Price leadership and unequal market sharing (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gro:rugsom:14013-eef

Access Statistics for this paper

More papers in Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management) Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().