Experimental economics /
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| Format: | eBook |
| Language: | English |
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Princeton, N.J. :
Princeton University Press,
©1993.
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| Online Access: | Connect to the full text of this electronic book |
Table of Contents:
- 1. Introduction and overview. A brief history of experimental economics
- A sample design for a market experiment
- Experimental methods: advantages and limitations
- Types of experiments
- Some procedural and design considerations
- Laboratory trading institutions. Appendices: Oral-double auction instructions; Suggestions for conducting and oral-double auction. 2. Decisions and games. Lotteries and expected values
- A sequential search experiment
- Expected-utility maximization and risk aversion
- Game theory, natural form games
- Extensive forms and backward-induction rationality
- Decision theory, game theory, and price theory
- Appendices: Derivation of the reservation wage; Instructions for a sequential search experiment; Constructing a von Neumann-Morgenstern utility function; Sequential equilibria; Instructions for the centepede game.
- 3. Double-auction markets. Double-auction procedures and performance
- Computers and the double auction
- Double-auction results: design effects; structural boundaries
- Multiple, interrelated double-auction markets
- Double-auction asses markets. 4. Posted-offer markets. Posted-offer procedures and performance
- Posted offer results: design effects
- Factors that generate supracompetitive prices
- Market power
- Regulation and restraint of monopoly power
- Appendices: Instructions for a posted-offer auction; Posted-offer instruction for computer implementation; Calculation of a mixed-strategy equilibrium. 5. Bargaining and auctions. Unstructured bargaining without side payments
- Bargaining over an externality: the Coase theorem
- Structured bargaining: Ultimatum game experiments; Alternating order experiments
- Auctions with fixed supply
- First-price auctions with private values
- Common-value auctions and the winner's curse
- Design of new auction institutions
- Appendices: Equilibrium bidding strategies; Instructions for a bargaining game with asymmetrics; Derivation of the optimal bid in an ultimatum game with value and information asymmetries. 6. Public goods, externalities, and voting. The voluntary-contribution mechanism
- Results
- Factors that may alleviate free-riding
- Incentive-compatible mechanisms
- Externalities
- Voting
- Appendices: A public-goods problem with private information; Instructions, the voluntary contributions mechanism; Incentive-compatibility in the Groves-Ledyard mechanism. 7. Asymmetric information. Quality uncertainty and "lemons" market outcomes
- Reputation effects
- Signaling
- Informational asymmetries in asset markets
- State uncertainty and insider information
- The Iowa presidential stock market
- Appendix: A market experiment with information asymmetrics.
- 8. Individual decisions in risky situations. Probability-triangle representations
- Lottery-choice experiments
- Financial incentives and controls for wealth effects
- Preference elicitation: problems and applications
- Preference reversals
- Inducing risk preferences
- Information processing: Baye's rules and biases
- Appendices: Instructions for lottery experiments; Scoring-rule probability; Utility elicitation. 9. Economic behavior and experimental methods: summary and extensions. Major results of experiments to date
- The relationship among theoretical, experimental, and natural eeconomic environments
- Experimental design
- Statistical analysis of data from economics experiments
- Statistical tests: Single treatment designs; Designs involving two or more treatments
- Conclusion: toward a more experimental science.