BILATERAL OLIGOPOLY IN POLLUTION PERMIT MARKETS: EXPERIMENTAL EVIDENCE.

We experimentally investigate behavior in a bilateral oligopoly using a supply function equilibria model discussed by Klemperer and Meyer (1989), Hendricks and McAfee (2010), and Malueg and Yates (2009). We focus on the role that market size and the degree of firm heterogeneity have on the market eq...

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Publicado en:Economic Inquiry Vol. 52; no. 3; pp. 1060 - 1080
Autores principales: SCHNIER, KURT, DOYLE, MARTIN, RIGBY, JAMES R., YATES, ANDREW J.
Formato: Artículo
Publicado: Wiley-Blackwell Jul2014
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Acceso en línea:Ver este registro en EBSCOhost
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        95908279
        10.1111/ecin.12087
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        atl: BILATERAL OLIGOPOLY IN POLLUTION PERMIT MARKETS: EXPERIMENTAL EVIDENCE.
      aug:
        au:
          SCHNIER, KURT
          DOYLE, MARTIN
          RIGBY, JAMES R.
          YATES, ANDREW J.
        affil:
          Professor of Economics, School of Humanities, Social Sciences and Arts, University of California, Merced CA 95343
          Professor of River Science and Policy, Nicholas School of the Environment, Duke University, Durham NC 27708
          Research Hydrologist, USDA ‐ ARS National Sedimentation Laboratory, Oxford MS 38655
          Assistant Professor, Economics/Curriculum for the Environment and Ecology, University of North Carolina, Chapel Hill NC 27599
      su:
        Oligopolies
        Heterogeneity
        Economics
        Supply functions (Economic theory)
        Emissions trading
        General equilibrium theory (Economics)
        Market equilibrium
        Efficient market theory
        Mathematical models
      sug:
        subj:
          Oligopolies
          Heterogeneity
          Economics
          Supply functions (Economic theory)
          Emissions trading
          General equilibrium theory (Economics)
          Market equilibrium
          Efficient market theory
          Mathematical models
      ab: We experimentally investigate behavior in a bilateral oligopoly using a supply function equilibria model discussed by Klemperer and Meyer (1989), Hendricks and McAfee (2010), and Malueg and Yates (2009). We focus on the role that market size and the degree of firm heterogeneity have on the market equilibrium. Our results indicate that subjects within the experiment recognize the strategic incentives in a bilateral oligopoly, but they do not exploit these incentives to the exact magnitude predicted by theory. We find weaker support for predicted market outcomes, as market efficiency does not depend on market size, and in some cases buyers or sellers are more successful at extracting the rents from the market. ( JEL L13, Q5, C9)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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