Normann, Hans-Theo, Huck, Steffen, and Oechssler, Jörg

"Does information about competitors' actions increase or decrease competition in experimental oigopoly markets?"

JEL codes: L13, C92, C72
Keywords: information, collusion, prices versus quantities, imitation

Abstract:  This paper investigates the impact of the publication of firm-specific data has on the competitiveness of experimental oligopoly markets. We compare two treatments: in one, firms are informed about their rivals' actions and profits. In the other, firms are only given aggregate information about their rivals' actions (aggregate quantities or prices). We find that more information leads to more competition. In the treatments where aggregate information is given, we confirm the theoretical result that Bertrand markets are more competitive than Cournot markets.

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