Endogenous Timing in Duopoly: Experimental Evidence

Abstract

In this paper we experimentally investigate the extended game with observable delay of Hamilton and Slutsky (Games Econ.Beh., 1990).Firms bindingly announce a production period (one out of two periods) and then they produce in the announced sequence.Theory predicts simultaneous production in period one but we find that a substantial proportion of subjects choose the second period.Commitment;Endogenous timing;Experimental economics;Cournot;Stackel- berg