This paper reports an experiment conducted to assess the effects of alterations in production conditions and product durability on market power in Bertrand-Edgeworth duopolies. Experiment results indicate that advance production increases market power in the sense that mean transaction prices increase relative to static Nash equilibrium predictions for a baseline market. In a similar way, a sim...

Inequality in land ownership remains a major issue in many developing countries, such as Brazil, Colombia, and South Africa. Donors advocate a new model of “willing-buyer willing-seller”, market-led land redistribution, but actual redistribution has fallen short of expectations. Little effort has been made so far to formalize the obstacles to market-led land redistribution. In this paper, we sh...

This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free-form chat among firms in a laboratory experiment, we identify typical patterns both explicit formation and indirect attempts collude tacitly. We document that are less likely communicate explicitly about price fixing more use messages when sanctioning institutions present. effec...

This paper addresses the widely debated issue of comparing the relative efficiency of two doubleauction mechanisms for power exchanges. An agent-based modeling approach is adopted to simulate a double-auction power exchange. Two standard pricing rules are considered and compared: “discriminatory” and “uniform”. Computational experiments, characterized by different inelastic demand level, reprod...

Dynamic spectrum auction is an effective solution to manage spectrum across many small networks. Yet without proper economic design, spectrum auctions can be easily manipulated by bidders, suffering huge efficiency loss. Selfish bidders can manipulate their bids, individually or in groups, to game the system and obtain outcomes that favor their own interests and hurt others. Prior solutions hav...

This paper examines the economy-wide consequences of regulatory reform, with particular focus on price-cap regulation and competition regulation in Australia’s services industries. A general equilibrium model is used where oligopolistic firms produce differentiated products and interact on prices with tacit collusion represented by conjectural variations parameters. When capital stocks are fixe...