Pro-competitive price beating guarantees: experimental evidenceFatas, E., Georgantzis, N., Mañez, J. A. and Sabater-Grande, G. (2005) Pro-competitive price beating guarantees: experimental evidence. Review of Industrial Organization, 26 (1). pp. 115-136. ISSN 0889-938X Full text not archived in this repository. It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing. To link to this item DOI: 10.1007/s11151-004-6614-2 Abstract/SummaryWe report experimental results on duopoly pricing with and without price beating guarantees (PBG). In two control treatments, price beating is either imposed as an industry-wide rule or offered as a business strategy. Our major finding is that when price beating guarantees are imposed as a rule or offered as an option, effective prices are equal to or lower than those in a baseline treatment in which price beating is forbidden. Also, when price beating is treated as a business strategy, less than 50% of subjects adopted the guarantee, suggesting that, subjects realize the pro-competitive effects of the guarantee.
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