Aurora García-Gallego and Nilolaos Georgantzís

"Multiproduct Activity Matter in an Experimental Differentiated Oligopoly"

JEL codes: C72, C9, L1
Keywords: Multiproduct Firms; Multiproduct Bertrand-Nash Equilibrium; Collusion, Product Differentiation; Price Parallelism

Abstract:  In a symmetric differentiated experimental oligopoly with multiproduct firms we test the predictive power of the corresponding Bertrand-Nash equilibria. Subjects are not informed on the specification of the underlying demand model. In the presence of intense multiproduct activity and, provided that a parallel pricing rule is imposed to multiproducts firms, strategies tend to confirm that non-cooperative multiproduct solution.