Demand shocks, capacity coordination, and industry performance: lessons from an economic laboratory.

Antitrust exemptions granted to businesses under extenuating circumstances are often justified by the argument that they benefit the public by helping producers adjust to otherwise difficult economic circumstances. Such exemptions may allow firms to coordinate their capacities, as was the case of th...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 43; no. 1; pp. 139 - 167
Autores principales: Hampton, Kyle, Sherstyuk, Katerina
Formato: Artículo
Publicado: Wiley-Blackwell Spring2012
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/j.1756-2171.2012.00160.x
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        atl: Demand shocks, capacity coordination, and industry performance: lessons from an economic laboratory.
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        au:
          Hampton, Kyle
          Sherstyuk, Katerina
        affil:
          University of Alaska Anchorage; .
          University of Hawaii at Manoa; .
      su:
        Economic demand
        Business enterprises
        Economic shock
        Pricing
        Economic efficiency
        Economic research
      sug:
        subj:
          Economic demand
          Business enterprises
          Research and Development in the Social Sciences and Humanities
          Economic shock
          Pricing
          Economic efficiency
          Economic research
      ab: Antitrust exemptions granted to businesses under extenuating circumstances are often justified by the argument that they benefit the public by helping producers adjust to otherwise difficult economic circumstances. Such exemptions may allow firms to coordinate their capacities, as was the case of the post-September 11, 2001, antitrust immunity granted to Aloha and Hawaiian Airlines. We conduct economic laboratory experiments to determine the effects of explicit capacity coordination on oligopoly firms' abilities to adjust to negative demand shocks and on industry prices. The results suggest that capacity coordination speeds the adjustment process, but also has a clear procollusive effect on firm behavior.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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