Multiple openings and competitiveness of forward markets: experimental evidence
Article
Ferreira, J., Kujal, P. and Rassenti, S. 2016. Multiple openings and competitiveness of forward markets: experimental evidence. PLoS ONE. 11 (17), pp. 1-16. https://doi.org/10.1371/journal.pone.0158098
Type | Article |
---|---|
Title | Multiple openings and competitiveness of forward markets: experimental evidence |
Authors | Ferreira, J., Kujal, P. and Rassenti, S. |
Abstract | We test the competition enhancing effect of selling forward in experimental Cournot duopoly and quadropoly with multiple forward markets. We find that having two forward periods yields competitive outcomes and that the results are very close to the predicted theoretical results for both quantity setting duopolies and quadropolies. Our experiments lend strong support to the hypothesis that forward markets are competition enhancing. We then test a new market that allows for endogenously determined indefinitely many forward periods that only close when sellers coordinate on selling a zero amount in a forward market. We find that the outcomes under an endogenous close rule are also very competitive. These results hold for both duopolies and quadropolies. |
Publisher | Public Library of Science |
Journal | PLoS ONE |
ISSN | 1932-6203 |
Publication dates | |
21 Jul 2016 | |
Publication process dates | |
Deposited | 07 Jul 2016 |
Accepted | 11 Jun 2016 |
Output status | Published |
Publisher's version | License |
Copyright Statement | © 2016 Ferreira et al. |
Web address (URL) | https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0158098 |
Digital Object Identifier (DOI) | https://doi.org/10.1371/journal.pone.0158098 |
Language | English |
https://repository.mdx.ac.uk/item/867w6
Download files
Restricted files
Accepted author manuscript
26
total views6
total downloads2
views this month0
downloads this month