Universität zu Köln

Bolle, Friedel, Grimm, Veronika, Ockenfels, Axel and del Pozo, Xavier (2013). An experiment on supply function competition. Eur. Econ. Rev., 63. S. 170 - 186. AMSTERDAM: ELSEVIER SCIENCE BV. ISSN 0014-2921

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Abstract

We experimentally investigate key predictions of supply function equilibrium. While, overall, equilibrium organizes bidding behavior well, we observe three important deviations. First, bidding is sensitive to theoretically irrelevant changes of the demand distribution. Second, in a market with symmetric firms we observe tacit collusion in that firms provide less than the predicted quantities. Third, in a market with asymmetric capacities, the larger firm bids more competitively than predicted, while the smaller firms still provide less than equilibrium quantities. (C) 2013 Elsevier B.V. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Bolle, Friedel UNSPECIFIED UNSPECIFIED UNSPECIFIED Grimm, Veronika UNSPECIFIED UNSPECIFIED UNSPECIFIED Ockenfels, Axel UNSPECIFIED UNSPECIFIED UNSPECIFIED del Pozo, Xavier UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-474855
DOI:	10.1016/j.euroecorev.2013.06.006
Journal or Publication Title:	Eur. Econ. Rev.
Volume:	63
Page Range:	S. 170 - 186
Date:	2013
Publisher:	ELSEVIER SCIENCE BV
Place of Publication:	AMSTERDAM
ISSN:	0014-2921
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language ELECTRICITY SPOT MARKET; FUNCTION EQUILIBRIUM; CAPACITY CONSTRAINTS; CONTRACTS; OLIGOPOLY; AUCTIONS Multiple languages Economics Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/47485