Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Monday, September 13, 2010

Cournot or Stackelberg competition? A survey on experimental evidence

Posted by D. Daniel Sokol

Andreas Hildenbrand (Giessen - Econ) discusses Cournot or Stackelberg competition? A survey on experimental evidence.

ABSTRACT: In this survey, I look into experimental studies on duopolistic quantity competition with homogeneous products and duopolistic price competition with heterogeneous products. The focus is on the sequence of competition. That is, I summarize and analyze experimental studies checking Cournot competition against Stackelberg competition. I find that while Stackelberg equilibrium outcomes are seldom under quantity competition, under price competition, the Stackelberg equilibrium prediction seems to be more appropriate. However, after discussing the experimental setups, I conclude that some methodological problems are present. Moreover, I make recommendations for further research.

http://lawprofessors.typepad.com/antitrustprof_blog/2010/09/cournot-or-stackelberg-competition-a-survey-on-experimental-evidence.html

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