Dufwenberg and Gneezy Conducted Economic Experiments That Tested the Theory

Dufwenberg and Gneezy conducted economic experiments that tested the theory of Bertrand competition (oligopoly with homogeneous goods) in the case of duopoly.Theory predicts the stable market equilibrium is for each duopolist to price at marginal cost.The experimental tests of the duopoly model in Bertrand competition found ________.

A) that the experimental duopolists usually charged a price equal to marginal cost
B) that the experimental duopolists usually charged a price slightly above marginal cost
C) that the experimental duopolists usually charged a price significantly above marginal cost
D) none of the above