We examine the force of three types of behavioral dynamics in quantity-setting triopoly experiments: (1) mimicking the successful firm, (2) rules based on following the exemplary firm, and (3) rules based on belief learning. Theoretically, these three types of rules lead to the competitive, the collusive, and the CournotNash outcome, respectively. In the experiment we employ three information treatments, each of which is hypothesized to be conducive to the force of one of the three dynamic rules. To a large extent, the results are consistent with the hypothesized relationships between treatments, behavioral rules, and outcomes.

In this note we study a very simple trial & error learning process in the context of a Cournot oligopoly. Without any knowledge of the payoff functions players increase, respectively decrease, their quantity by one unit as long as this leads to higher profits. We show that despite the absence of any coordination or punishing device this process converges to a collusive outcome.

In this paper we experimentally study the effects of fairness, spite, and reputation formation on conflict. We show that fairness preferences are a potential source of conflict and that intentions play an important role in the perception of fairness. Further, we show that feelings of spite may affect the occurrence of conflict. Finally, we study reputation formation as a possible source of conflict. We show that people invest in a reputation of being a tough bargainer. This does not automatically increase conflict, however. The reason is that through reputation, information about one’s opponent is much better than in anonymous bargaining. (JEL: A 13, D 63, D 23, C 92, K 42) 1

Abstract not found