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Supra-competitive prices and market power in posted-offer markets
Journal article

Supra-competitive prices and market power in posted-offer markets

Douglas D Davis, Charles A Holt and Anne Patricia Villamil
Research in experimental economics, Vol.9, pp.121-137
01/01/2002
DOI: 10.1016/s0193-2306(02)09005-1

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Abstract

This paper reports the results of a posted-offer market experiment designed to examine the effects of static market power on prices, when other factors such as excess supply, the number of sellers, and dynamic incentives are held constant. Static market power results in a dramatic price increase in posted-offer triopolies with complete demand information. In duopolies, the effects of market power are not as obvious. Explanations for this difference are discussed. © 2002.
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