Spatial competition with three firms: an experimental study.

This article reports the results of an experimental study of the three firm location problem. We compare the subjects' behavior in the experiments with the symmetric mixed strategy Nash equilibrium calculated by Shaked. Overall, the findings are consistent with the equilibrium prediction. However, t...

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Publicado en:Economic Inquiry Vol. 38; no. 1; pp. 73 - 95
Autores principales: Collins, Richard, Sherstyuk, Katerina
Formato: Artículo
Publicado: Wiley-Blackwell January 2000
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      tig:
        atl: Spatial competition with three firms: an experimental study.
      aug:
        au:
          Collins, Richard
          Sherstyuk, Katerina
      su:
        Industrial location
        Experimental economics
        Nash equilibrium
        Risk
      sug:
        subj:
          Industrial location
          Experimental economics
          Nash equilibrium
          Risk
      ab: This article reports the results of an experimental study of the three firm location problem. We compare the subjects' behavior in the experiments with the symmetric mixed strategy Nash equilibrium calculated by Shaked. Overall, the findings are consistent with the equilibrium prediction. However, the subjects' locations were significantly more dispersed than predicted by the theory. Three alternative explanations of this phenomenon—inexperience, approximate equilibrium behavior and risk aversion—are suggested and evaluated for their predictive power. Special attention is paid to risk aversion. (JEL C9, C72, D43) Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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