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Multiple Openings and Competitiveness of Forward Markets: Experimental Evidence

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dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorFerreira, José Luis
dc.contributor.authorKujal, Praveen
dc.contributor.authorRassenti, Stephen
dc.contributor.funderMinisterio de Economía y Competitividad (España)es
dc.date.accessioned2023-11-03T11:48:32Z
dc.date.available2023-11-03T11:48:32Z
dc.date.issued2016-07-21
dc.description.abstractWe test the competition enhancing effect of selling forward in experimental Cournot duopoly and quadropoly with multiple forward markets. We find that two forward periods yields competitive outcomes and that the results are very close to the predicted theoretical results for 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.We test the competition enhancing effect of selling forward in experimental Cournot duopoly and quadropoly with multiple forward markets. We find that two forward periods yields competitive outcomes and that the results are very close to the predicted theoretical results for 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.en
dc.description.sponsorshipThis work was supported by ECO2011-27594 from the Spanish Ministerio de Economía y Competitividad.en
dc.format.extent16es
dc.identifier.bibliographicCitationFerreira, J.L., Kujal, P., Rassenti, S. (2016). Multiple Openings and Competitiveness of Forward Markets: Experimental Evidence. PLoS ONE, 11(7), e0158098.en
dc.identifier.doihttps://doi.org/10.1371/journal.pone.0158098
dc.identifier.issn1932-6203
dc.identifier.publicationfirstpage1es
dc.identifier.publicationissue7, e0158098es
dc.identifier.publicationlastpage16es
dc.identifier.publicationtitlePLoS Oneen
dc.identifier.publicationvolume11es
dc.identifier.urihttps://hdl.handle.net/10016/38753
dc.identifier.uxxiAR/0000018225
dc.language.isoenges
dc.publisherPLOSen
dc.relation.projectIDGobierno de España. ECO2011-27594es
dc.rights© 2016 Ferreira et al.es
dc.rightsAtribución 3.0 España*
dc.rights.accessRightsopen accessen
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/es/*
dc.subject.ecienciaEconomíaes
dc.subject.otherCooperationen
dc.subject.otherContractsen
dc.subject.otherOligopolyen
dc.subject.otherInfinitely repeated gamesen
dc.subject.otherElectricity marketsen
dc.titleMultiple Openings and Competitiveness of Forward Markets: Experimental Evidenceen
dc.typeresearch article*
dc.type.hasVersionVoR*
dspace.entity.typePublication
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