Allowing for two production periods in the Cournot duopoly: Experimental evidence
نویسنده
چکیده
In this study behavior in a Cournot duopoly with two production periods (the market clears only after the second period) is compared to behavior in a standard one-period Cournot duopoly. Theory predicts the endogenous emergence of a Stackelberg outcome in the two-period market. The results of the experiments, however, reveal that in both markets (roughly) symmetric outcomes emerge and that, after a short adaptation phase, average industry output in the two-period markets is the same as in the standard one-period markets. © 2005 Elsevier B.V. All rights reserved. JEL classification: C72; C91
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