Pricing behavior in asymmetric markets with differentiated products

B-Tier
Journal: International Journal of Industrial Organization
Year: 2009
Volume: 27
Issue: 1
Pages: 24-32

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We experimentally test Bertrand-Nash equilibria in markets with differentiated products. In contrast to the existing literature, we choose asymmetric market settings in which pure strategy equilibria do not exist. Our results show that Bertrand-Nash equilibria do remarkably well in predicting price distributions and comparative statics. Inaccuracies can be explained by boundedly rational decision-making. Other equilibrium concepts are not able to explain the data.

Technical Details

RePEc Handle
repec:eee:indorg:v:27:y:2009:i:1:p:24-32
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29