Price dynamics and collusion under short-run price commitments

B-Tier
Journal: International Journal of Industrial Organization
Year: 2011
Volume: 29
Issue: 1
Pages: 134-153

Authors (2)

Leufkens, Kasper (not in RePEc) Peeters, Ronald (University of Otago)

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 consider a dynamic homogeneous oligopoly in which firms set prices repeatedly. Theory predicts that short-run price commitments increase profits and may lead to less price stability. The experiments that we conducted provide support for the first effect and against the second effect when a random ending rule is applied. When a fixed ending rule is applied, we find no significant impact of short-run price commitments on profits and price stability.

Technical Details

RePEc Handle
repec:eee:indorg:v:29:y:2011:i:1:p:134-153
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29