Experimental Tests of Consciously Parallel Behaviour in Oligopoly

Ronald Harstad, Stephen Martin () and Hans-Theo Normann

No 1997-07, CIE Discussion Papers from University of Copenhagen. Department of Economics. Centre for Industrial Economics

Abstract: The purpose of this research is to examine, in experimental oligopoly markets, (a) whether parallel pricing patterns emerge when communication among players is limited to cheap talk announcements; (b) whether such pricing patterns, if they emerge, lead to payoffs that exceed those players would receive in Nash equilibrium of the one-shot game. Results indicate that announcements and price matching lead to margins that exceed those of static Nash equilibrium, while falling short of joint profit maximization.

Pages: 37 pages
Date: 1997-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in: Louis Phlips (ed.): Applied Industrial Economics, Cambridge University Press, 1998, 123-151

Downloads: (external link)
http://www.econ.ku.dk/cie/dp/dp_1997-1999/1997-07.pdf/ (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.econ.ku.dk/cie/dp/dp_1997-1999/1997-07.pdf/ [301 Moved Permanently]--> https://www.econ.ku.dk/cie/dp/dp_1997-1999/1997-07.pdf/)

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:kud:kuieci:1997-07

Access Statistics for this paper

More papers in CIE Discussion Papers from University of Copenhagen. Department of Economics. Centre for Industrial Economics �ster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().