Arbeitspapier

Is a firm a firm? A Stackelberg experiment

Industrial organization is mainly concerned with the behavior of large firms. Experimental industrial organization therefore faces a problem: How can firms be brought into the laboratory? The main approach relies on framing: Call individuals firms! This experimental approach is not in line with modern industrial organization, according to which a firm's market behavior is also determined by its organizational structure. In this paper, a Stackelberg experiment is considered in order to answer the question whether framing individual decision making as organizational decision making or implementing an organizational structure is more effective in generating profit-maximizing behavior. Firms are either represented by individuals or by teams. I find that teams' quantity choices are more in line with the assumption of profit maximization than individuals' choices. Compared to individuals, teams appear to be less inequality averse.

Sprache
Englisch

Erschienen in
Series: MAGKS Joint Discussion Paper Series in Economics ; No. 29-2012

Klassifikation
Wirtschaft
Noncooperative Games
Design of Experiments: Laboratory, Individual
Design of Experiments: Laboratory, Group Behavior
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Thema
industrial organization
Stackelberg game
individual behavior
team behavior
framing
experimental economics
Industrieökonomik
Test
Unternehmenspolitik
Framing
Arbeitsgruppe

Ereignis
Geistige Schöpfung
(wer)
Hildenbrand, Andreas
Ereignis
Veröffentlichung
(wer)
Philipps-University Marburg, Faculty of Business Administration and Economics
(wo)
Marburg
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Hildenbrand, Andreas
  • Philipps-University Marburg, Faculty of Business Administration and Economics

Entstanden

  • 2012

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