BERTRAND COMPETITION WITH ASYMMETRIC MARGINAL COSTS

Autor:	Subhasish Dugar, Arnab Mitra
Rok vydání:	2016
Předmět:	Marginal cost Economics and Econometrics Marginal profit 05 social sciences General Business Management and Accounting Microeconomics Bertrand paradox (economics) 0502 economics and business Bertrand competition Marginal product Market price Economics 050207 economics Duopoly Limit price 050205 econometrics
Zdroj:	Economic Inquiry. 54:1631-1647
ISSN:	0095-2583
DOI:	10.1111/ecin.12328
Popis:	This article tests the prediction of three discrete asymmetric duopoly price competition games in the laboratory. The games differ from each other in terms of the size of the cost asymmetry that induces a systematic variation in the difference between the firms' marginal costs. While the standard theory requires the low-cost firm to set a price just equal to the high-cost firm's marginal cost, which is identical across all three games, and win the entire market, intuition suggests that market price may increase with a decrease in the absolute difference between the two marginal costs. We develop a quantal response equilibrium model to test our competing conjecture. (JEL L11, L12, C91, D43)
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::e0ea67a7df7361d360420e6cfa32c7d2 https://doi.org/10.1111/ecin.12328 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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