This paper uses laboratory methods to evaluate determinants of supra-competitive pricing. The experiment involves three treatments, each with the same market supply, demand, and competitive price. In the baseline treatment, capacity is divided among five sellers so that the competitive price is a Nash equilibrium. Market power is created in a second treatment by reallocating capacity among the ...

In view of the well known core equivalence results in atomless economies, coincidence of market game equilibrium allocations with competitive allocations is tantamount to a three way equivalence between market game mechanisms, competitive equilibria and the core. Based on this idea I propose an equilibrium refinement of market games which allows me to use the core equivalence machinery to provi...

The industrial drives market continues to show dynamic growth and tough competition. The players in this market use all their ingenuity in order to find competitive advantage wherever possible. Part of this competitive advantage comes from close interaction with their suppliers: of passive components, mechanics, control electronics and, of course, IGBT modules. When searching for competitive ad...