Buyer power in bilateral oligopolies with advance production: Experimental evidence

We conduct experiments based on the oligopoly model by Kreps and Scheinkman (1983) to assess the impact of demand side concentration on market outcomes. Both buyers and sellers in our markets are humans. The number of firms is fixed at three in all treatments. Only the number of buyers is varied and total demand is split equally among them. We observe that firms set lower prices in markets with only few buyers, namely one or two. Price dispersion is higher in markets with few buyers. Aggregate demand withholding decreases with the number of buyers. This results in lower profits for firms and higher profits for buyers in markets with few buyers. (C) 2015 Elsevier B.V. All rights reserved.

Metadaten
Verfasserangaben:	Andreas Orland ORCiD GND, Reinhard Selten
DOI:	https://doi.org/10.1016/j.jebo.2015.11.016
ISSN:	0167-2681
ISSN:	1879-1751
Titel des übergeordneten Werks (Englisch):	Applied surface science : a journal devoted to applied physics and chemistry of surfaces and interfaces
Verlag:	Elsevier
Verlagsort:	Amsterdam
Publikationstyp:	Wissenschaftlicher Artikel
Sprache:	Englisch
Jahr der Erstveröffentlichung:	2016
Erscheinungsjahr:	2016
Datum der Freischaltung:	22.03.2020
Freies Schlagwort / Tag:	Advance production; Buyer power; Demand structure; Laboratory experiment; Oligopoly
Band:	122
Seitenanzahl:	12
Erste Seite:	31
Letzte Seite:	42
Fördernde Institution:	Max Planck Institute for Research on Collective Goods in Bonn
Organisationseinheiten:	Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften
Peer Review:	Referiert