Price leadership and unequal market sharing: Collusion in experimental markets

B-Tier
Journal: International Journal of Industrial Organization
Year: 2015
Volume: 43
Issue: C
Pages: 80-97

Score contribution per author:

2.018 = (α=2.02 / 1 authors) × 1.0x B-tier

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

Abstract

We consider experimental markets of repeated homogeneous price-setting duopolies. We investigate the effect on collusion of sequential versus simultaneous price setting. We also examine the effect on collusion of changes in the size of each subject's market share in case both subjects set the same price. Our results show that sequential price setting compared with simultaneous price setting facilitates collusion, if subjects have equal market shares or if the follower has the larger market share. With sequential price setting, we find more collusion if subjects have equal market shares rather than unequal market shares. We observe more collusion if the follower has the larger market share than if the follower has the smaller market share.

Technical Details

RePEc Handle
repec:eee:indorg:v:43:y:2015:i:c:p:80-97
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25