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2001-09-18Buch DOI: 10.18452/3665
Simultaneous and sequential price competition in heterogeneous duopoly markets: Experimental evidence
dc.contributor.authorKübler, Dorothea
dc.contributor.authorMüller, Wieland
dc.date.accessioned2017-06-15T21:43:50Z
dc.date.available2017-06-15T21:43:50Z
dc.date.created2005-10-24
dc.date.issued2001-09-18
dc.identifier.issn1436-1086
dc.identifier.urihttp://edoc.hu-berlin.de/18452/4317
dc.description.abstractWe investigate simultaneous and sequential price competition in duopoly markets with differentiated products. In both markets symmetric firms are repeatedly and randomly matched. The strategy method is used to elicit behavior in the sequential market. We find that average leader prices in the sequential market are higher than average prices in the simultaneous market, just as predicted by the theory, whereas average follower prices are not above average prices in the simultaneous market, in contrast to the theoretical prediction. Furthermore, second movers gain from the sequential structure in comparison to simultaneous-move markets whereas first movers do not. As in theory, there is a significant first–mover disadvantage when firms decide sequentially. Finally, to assess the robustness of our findings, we report the results of control treatments varying the matching scheme and the mode of eliciting choices (strategy method vs. standard sequential play).eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.subjectexperimental economicseng
dc.subjectheterogeneous duopolyeng
dc.subjectprice leadershipeng
dc.subjectsimultaneous playeng
dc.subjectfirst–mover disadvantageeng
dc.subjectstrategy methodeng
dc.subject.ddc330 Wirtschaft
dc.titleSimultaneous and sequential price competition in heterogeneous duopoly markets: Experimental evidence
dc.typebook
dc.identifier.urnurn:nbn:de:kobv:11-10051147
dc.identifier.doihttp://dx.doi.org/10.18452/3665
local.edoc.container-titleSonderforschungsbereich 373: Quantification and Simulation of Economic Processes
local.edoc.pages27
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2001
local.edoc.container-issue97
local.edoc.container-year2001
local.edoc.container-erstkatid2135319-0

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