Duopoly Behavior in Asymmetric Markets: An Experimental Evaluation
journal contributionposted on 2021-11-15, 21:29 authored by Charles F. Mason, Owen R. Phillips, C. Nowell
Experimental duopolies are analyzed to answer two questions: Are asymmetric duopolies less likely to collude than symmetric duopolies? Is the time it takes to reach an equilibrium affected by asymmetry? In a repeated game where output is the choice, we have data 19 (respectively, 21) subject pairs where both agents are low-cost (respectively, high-cost) and 25 subject pairs where one agent in high-cost and one is low-cost. Subjects make choices for at least 35 periods. Results indicate that asymmetric markets are less cooperative and take longer to reach equilibrium than symmetric markets.
PublisherUniversity of Wyoming. Libraries
Journal titleReview of Economics and Statistics
CollectionFaculty Publications - Economics
- Library Sciences - LIBS