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  • Thumbnail for Fiesta, Santa Fe. 1938: I38
    Fiesta, Santa Fe. 1938: I38

    Southwestern Ruins, Villages, Pueblos and Missions, 1896-1940: I38

  • Thumbnail for First Mover Advantage in Sequential Bertrand Markets: an Experimental Approach
    First Mover Advantage in Sequential Bertrand Markets: an Experimental Approach by Fitz, Perry

    Literature and applied experimental evidence has established the consensus that firms competing with price competition in sequential markets have a second mover advantage. A high proportion of literature assumes firms have symmetric costs, while in real markets firms tend to have asymmetrical costs. In this paper, I use current literature to define various profit assumptions that yields a theoretical first mover advantage for a low-cost firm in a differentiated-product Bertrand-duopoly. I report on the findings of an experimental 30 round sequential game, where firms have varying levels of cost. The results show that a low-cost firm will not necessarily always have a first mover advantage against a high-cost competitor.