EconPapers    
Economics at your fingertips  
 

An Experimental Test of Discount-Rate Effects on Collusive Behaviour in Duopoly Markets

Robert Feinberg and Thomas Husted ()

Journal of Industrial Economics, 1993, vol. 41, issue 2, 153-60

Abstract: Game theory suggests that the ability to sustain collusive equilibria in duopoly markets depends on sufficiently low rates of time preference. This proposition has never been subjected to experimental test, possibly because of the difficulty of inducing collusive behavior in experimental markets in the absence of discounting. The authors attempt to induce collusive equilibria in the absence of discounting. They then introduce discount rates of 25 and 150 percent by having payoffs decline each period at one of these two rates. The experimental results indicate that collusive duopoly equilibria are less likely to occur with higher rates of discounting. Copyright 1993 by Blackwell Publishing Ltd.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (57)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819930 ... 0.CO%3B2-U&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
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:bla:jindec:v:41:y:1993:i:2:p:153-60

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-31
Handle: RePEc:bla:jindec:v:41:y:1993:i:2:p:153-60