ADVANCE PRODUCTION, INVENTORIES, AND MARKET POWER: AN EXPERIMENTAL INVESTIGATION.
We report an experiment that assesses the effects of alterations in production conditions and product durability on market power in Bertrand-Edgeworth duopolies. Static equilibrium analysis predicts that advance (rather than 'to demand') production raises prices, but does not affect profits. The fur...
| Publicado en: | Economic Inquiry Vol. 51; no. 1; pp. 941 - 959 |
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| Formato: | Artículo |
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Wiley-Blackwell
Jan2013
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=83710988&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 83710988 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Jan2013 vid: 51 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 83710988 10.1111/j.1465-7295.2011.00388.x ppf: 941 ppct: 18 formats: fmt: @attributes: type: P size: 1000KB tig: atl: ADVANCE PRODUCTION, INVENTORIES, AND MARKET POWER: AN EXPERIMENTAL INVESTIGATION. aug: au: DAVIS, DOUGLAS D. affil: Davis: Professor, Virginia Commonwealth University, Richmond VA 23284-4000. Phone 1-804-828-7140, Fax 1-804-828-9103, E-mail su: Markets Economic competition Economic policy Government policy Economic equilibrium Production (Economic theory) Prices Economics Inventories Duopolies Markov processes Inventory control Logical prediction sug: subj: Markets Economic competition Economic policy Government policy Economic equilibrium Production (Economic theory) Prices Economics Process, Physical Distribution, and Logistics Consulting Services All Other Support Services Inventories Duopolies Markov processes Inventory control Logical prediction ab: We report an experiment that assesses the effects of alterations in production conditions and product durability on market power in Bertrand-Edgeworth duopolies. Static equilibrium analysis predicts that advance (rather than 'to demand') production raises prices, but does not affect profits. The further addition of a simple inventory option causes prices to fall and seller earnings to increase. Contrary to these predictions, we observe similar prices in baseline and advance production treatments, but lower profits given advance production. An inventory option reduces both prices and earnings. Results are driven by the treatments' effects on sellers' capacities to tacitly collude. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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