Ecology

Cournot competition

Biology

Complete information

Microeconomics

Oligopoly

Economics

Bertrand paradox (economics)

Competition (biology)

Mathematics

Nash equilibrium

Geometry

Mathematical economics

Regular polygon

Bertrand competition

We report the results of a series of experimental Bertrand duopolies where firms have convex costs. These duopolies are theoretically characterized by a multiplicity of Nash equilibria. Using a 2×2 design, we analyze price choices in symmetric and asymmetric markets under two information conditions (complete versus incomplete information about profits). We find that information has no effect in symmetric markets with respect to market prices and the time it takes for markets to stabilize. However, in asymmetric markets, complete information leads to higher market prices and quicker convergence of price choices. JEL Classification numbers: L13, C72, C92.

Bertrand competition with convex costs in symmetric and asymmetric markets. Results from a pilot study