Endogenous Timing in Duopoly: Experimental Evidence
CentER Discussion Paper No. 2005-77
14 Pages Posted: 11 Jul 2005
Date Written: June 2005
In this paper, we experimentally investigate the extended game with observable delay of Hamilton and Slutsky (Games Econ. Beh., 1990). Firms bindingly announce a production period (one out of two periods) and then they produce in the announced sequence. Theory predicts simultaneous production in period one but we find that a substantial proportion of subjects choose the second period.
Keywords: Commitment, endogeneous timing, experimental economics, Cournot, Stackelberg
JEL Classification: C72, C92, D43
Suggested Citation: Suggested Citation