| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5078325 | International Journal of Industrial Organization | 2011 | 20 Pages |
Abstract
We consider a dynamic homogeneous oligopoly in which firms set prices repeatedly. Theory predicts that short-run price commitments increase profits and may lead to less price stability. The experiments that we conducted provide support for the first effect and against the second effect when a random ending rule is applied. When a fixed ending rule is applied, we find no significant impact of short-run price commitments on profits and price stability.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kasper Leufkens, Ronald Peeters,