Experimentation, Information Sharing and Oligopoly Limit Pricing
Author: Bipasa Datta
Publisher:
Published: 1999
Total Pages: 28
ISBN-13:
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Asymmetric Information Sharing in Oligopoly
Author: David P. Byrne
Publisher:
Published: 2023
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKUsing a natural experiment from a retail gasoline antitrust case, we study how asymmetric information sharing affects oligopoly pricing. Empirically, price competition softens when, following case settlement, information sharing shifts from symmetric to asymmetric, with one firm losing access to high-frequency, granular rival price data. We provide theory and empirics illustrating how strategic ignorance creates price commitment, leading to higher price-cost margins. Using a structural model, we quantify the impact of asymmetric information sharing on firms' profits, finding substantial profit-enhancing effects. These results provide a cautionary tale for antitrust agencies regarding the potential unintended consequences of limiting price information sharing.
Oligopoly Limit-Pricing in the Lab
Author: Wieland Müller
Publisher:
Published: 2006
Total Pages: 41
ISBN-13:
DOWNLOAD EBOOKWe examine the behavior of senders and receivers in the context of oligopoly limit pricing experiments in which high prices chosen by two privately informed incumbents may signal to a potential entrant that the industry-wide costs are high and that entry is unprofitable. The results provide strong support for the theoretical prediction that the incumbents can credibly deter unprofitable entry without having to distort their prices away from their full information levels. Yet, in a large number of cases, asymmetric information induces incumbents to raise prices when costs are low. The results also show that the entrants' behavior is by and large bi-polar: entrants tend to enter when the incumbents' prices are low but tend to stay out when the incumbents' prices are high.
Experiments and Competition Policy
Author: Jeroen Hinloopen
Publisher: Cambridge University Press
Published: 2009-03-12
Total Pages: 329
ISBN-13: 0521493420
DOWNLOAD EBOOKEconomists have begun to make much greater use of experimental methods in their research. This collection surveys these methods and shows how they can help us to understand firm behaviour in relation to various forms of competition policy.
Papers in Experimental Economics
Author: Vernon L. Smith
Publisher: Cambridge University Press
Published: 1991-11-29
Total Pages: 829
ISBN-13: 0521364566
DOWNLOAD EBOOKA collection of the major papers of Vernon L. Smith, the main creator of the new field of experimental economics.
Competition Policy
Author: Louis Phlips
Publisher: Cambridge University Press
Published: 1995-10-19
Total Pages: 292
ISBN-13: 9780521498715
DOWNLOAD EBOOKThis book uses game theory to analyse anti-competitive behaviour among firms and to consider its implications for competition policy. Part I focuses on 'explicit collusion': the author proves that 'four are few and six are many', and shows how cartels can be enforced under imperfect and incomplete information. Part II on 'tacit collusion' discusses the informational requirements of collusion detection in noncooperative repeated games. In Part III on 'semicollusion', excess capacity is shown to reinforce collusion. Part IV is devoted to the detection of predatory pricing. In this book, Louis Phlips applies the latest economic theory to a discussion of several European antitrust decisions and empirical studies. The presentation of case studies, combined with a clear exposition of the theory, will make this book invaluable to teachers and students of competition policy.
Handbook of Experimental Economics Results
Author: Charles R. Plott
Publisher: Elsevier
Published: 2008-08-21
Total Pages: 1175
ISBN-13: 0444826424
DOWNLOAD EBOOKWhile the field of economics makes sharp distinctions and produces precise theory, the work of experimental economics sometimes appears blurred and may produce uncertain results. The contributors to this volume have provided brief notes describing specific experimental results.
Antitrust, Results from the Laboratory
Author: Charissa P. Wellford
Publisher:
Published: 1993
Total Pages: 88
ISBN-13:
DOWNLOAD EBOOKInformation Exchanges Among Firms and Their Impact on Competition
Author: Kai-Uwe Kühn
Publisher:
Published: 1995
Total Pages: 148
ISBN-13:
DOWNLOAD EBOOK"The report assesses the initiatives for information exchange among firms and their consequences for welfare with a view towards the design of competition policy in this domain. To this end the report surveys critically the academic literature on static and dynamic models of competition in their relation to information exchange and examines the main antitrust legislation and cases in Europe and the US."--Page i.
New Developments in the Analysis of Market Structure
Author: International Economic Association
Publisher: MIT Press
Published: 1986
Total Pages: 588
ISBN-13: 9780262690935
DOWNLOAD EBOOKThese contributions discuss a number of important developments over the past decade in a newly established and important field of economics that have led to notable changes in views on governmental competition policies. They focus on the nature and role of competition and other determinants of market structures, such as numbers of firms and barriers to entry; other factors which determine the effective degree of competition in the market; the influence of major firms (especially when these pursue objectives other than profit maximization); and decentralization and coordination under control relationships other than markets and hierarchies.ContributorsJoseph E. Stiglitz, G. C. Archibald, B. C. Eaton, R. G. Lipsey, David Enaoua, Paul Geroski, Alexis Jacquemin, Richard J. Gilbert, Reinhard Selten, Oliver E. Williamson, Jerry R. Green, G. Frank Mathewson, R. A. Winter, C. d'Aspremont, J. Jaskold Gabszewicz, Steven Salop, Branko Horvat, Z. Roman, W. J. Baumol, J. C. Panzar, R. D. Willig, Richard Schmalensee, Richard Nelson, Michael Scence, and Partha Dasgupta
