Tie-breaking rules and divisibility in experimental duopoly markets

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2008
Volume: 67
Issue: 1
Pages: 164-179

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

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.

Technical Details

RePEc Handle
repec:eee:jeborg:v:67:y:2008:i:1:p:164-179
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29