Tie-Breaking Rules and Divisibility in Experimental Duopoly Markets

Daniela Puzzello

MPRA Paper from University Library of Munich, Germany

Abstract: We investigate pricing behavior of sellers in duopoly markets with posted prices and market power. The two treatment variables are given by tie-breaking rules and divisibility of the price space. The first treatment variable deals with the rule under which demanded units are allocated between sellers in case of a price tie. A change in divisibility is modeled by making the sellers’ price space finer or coarser. We find that the incidence of perfect collusion is significantly higher under the sharing tie-breaking rule than under the random (coin-toss) one, especially when the price space is less divisible.

Keywords: Collusion; Tie-breaking rules; Divisibility; Bertrand model (search for similar items in EconPapers)
JEL-codes: C9 L1 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/6453/1/MPRA_paper_6453.pdf original version (application/pdf)

Related works:
Journal Article: Tie-breaking rules and divisibility in experimental duopoly markets (2008)
Working Paper: Tie-Breaking Rules and Divisibility in Experimental Duopoly Markets (2007)
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:pra:mprapa:6453

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().