Price-setting and attainment of equilibrium: Posted offers versus an administered price

B-Tier
Journal: Games and Economic Behavior
Year: 2017
Volume: 106
Issue: C
Pages: 277-293

Authors (4)

Collins, Sean M. (not in RePEc) James, Duncan (not in RePEc) Servátka, Maroš (Macquarie University) Woods, Daniel (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

The operation of the posted offer market with advance production environment (Mestelman and Welland, 1988), appropriately parameterized, differs from that of the market entry game (Selten and Güth, 1982), appropriately presented, only in terms of price-setting. We establish the effect of this difference in price-setting on attainment of the competitive equilibrium allocation while controlling for effects relating to the presentation of the market entry game and to the stationarity or non-stationarity of environment. Free posting of prices promotes convergence to the competitive equilibrium allocation, while the typical market entry game data can be characterized as displaying cycling prices.

Technical Details

RePEc Handle
repec:eee:gamebe:v:106:y:2017:i:c:p:277-293
Journal Field
Theory
Author Count
4
Added to Database
2026-01-29