Tacit Collusion in Price-Setting Duopoly Markets: Experimental Evidence

Lisa R. Anderson, Beth A. Freeborn and Charles A. Holt ()

No 73, Working Papers from Department of Economics, College of William and Mary

Abstract: We study the effect of demand structure on the ability of subjects to tacitly collude on prices by considering Bertrand substitutes and Bertrand complements. We find evidence of collusion in the complements treatment, but no such evidence in the substitutes treatment. This finding is somewhat in contrast with Potters and Suetens (2007) who observe tacit collusion in two treatments with similar underlying demand structures but with no market context.

Keywords: collusion; Bertrand; experiment (search for similar items in EconPapers)
JEL-codes: C9 L1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-exp and nep-mic
Date: 2008-07-10

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Persistent link: http://EconPapers.repec.org/RePEc:cwm:wpaper:73

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