Allowing for Two Production Periods in the Cournot Duopoly: Experimental Evidence

CentER Discussion Paper No. 2003-42

Posted: 8 Jun 2004

See all articles by Wieland Müller

Wieland Müller

University of Vienna, Department of Economics & VCEE; Tilburg University, Department of Economics & CentER

Date Written: 2003

Abstract

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 adaption phase, average industry output in the two-period markets is the same as in the standard one-period markets.

Keywords: Cournot duopoly, Stackelberg, flexibility, experiments

JEL Classification: C72, C91

Suggested Citation

Müller, Wieland, Allowing for Two Production Periods in the Cournot Duopoly: Experimental Evidence (2003). CentER Discussion Paper No. 2003-42. Available at SSRN: https://ssrn.com/abstract=555785

Wieland Müller (Contact Author)

University of Vienna, Department of Economics & VCEE ( email )

Oskar-Morgenstern-Platz 1
Vienna, A-1090
Austria

HOME PAGE: http://https://homepage.univie.ac.at/wieland.mueller/

Tilburg University, Department of Economics & CentER ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://www.tilburguniversity.edu/webwijs/show/w.mueller-3.htm

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