Market Concentration, Price Dispersion and Inefficient Cross-hauling in the Laboratory

Simple item page
dc.creatorVan Huyck, John
dc.creatorWade, Chad
dc.date2014
dc.date.accessioned2023-10-02T15:52:23Z
dc.date.available2023-10-02T15:52:23Z
dc.date.issued2014-04-01
dc.descriptionPublicFinance
dc.description.abstractThis paper presents experimental evidence suggesting that persistent price dispersion that violates the law of one price may be a disequilibrium phenomena. Increasing market concentration increases the pecuniary incentive to give a best response andsatisfy the law of one price, that is, a few large firms have a larger pecuniary incentive to solve the allocation coordination problem than many small firms. In the two firm treatment, the law of one price holds. However, in both treatments with small firms or transportation costs we observe persistent price dispersion. The paper also finds evidence of ineficient cross-hauling for purely strategic reasons.en
dc.format.digitalOriginborn digitalen
dc.format.mediumElectronicen
dc.format.mimetypepdf
dc.identifier.urihttps://hdl.handle.net/1969.1/199396
dc.language.isoen_US
dc.publisherPrivate Enterprise Research Center, Texas A&M University
dc.publisher.digitalTexas A&M University. Library
dc.relationPublicFinanceen
dc.relation.ispartof1402
dc.rightsNO COPYRIGHT - UNITED STATESen
dc.rights.urihttps://rightsstatements.org/page/NoC-US/1.0/?language=en
dc.subject1402en
dc.subjectMarket concentrationen
dc.subjectOptimization premiumen
dc.subjectStrategic suppliersen
dc.subjectCross-haulingen
dc.subjectPriceen
dc.subjectPublicFinance
dc.titleMarket Concentration, Price Dispersion and Inefficient Cross-hauling in the Laboratoryen
dc.typeWorkingPapersen
dc.type.materialTexten
dc.type.materialStillImageen

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
wp_1402.pdf
Size:
489.1 KB
Format:
Adobe Portable Document Format
Download

Collections

PERC Publications