Extracting Valuable Data from Classroom Trading Pits
How well does competitive theory explain the outcome in experimental markets. The authors examined the results of a large number of classroom trading experiments that used a pit-trading design found in <italic>Experiments with Economic Principles</italic>, an introductory economics textbook by Bergstrom and Miller. They compared experimental outcomes with predictions of competitive-equilibrium theory and with those of a simple profit-splitting theory. Neither theory was entirely successful in explaining the data, although in the first rounds of trading there was significant profit splitting and, as traders became more experienced, outcomes were closer to those predicted by competitive theory.
Year of publication: |
2005
|
---|---|
Authors: | Bergstrom, Theodore C. ; Kwok, Eugene |
Published in: |
The Journal of Economic Education. - Taylor & Francis Journals, ISSN 0022-0485. - Vol. 36.2005, 3, p. 220-235
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Extracting valuable data from classroom trading pits
Bergstrom, Theodore C., (2005)
-
Extracting Valuable Data from Classroom Trading Pits
Bergstrom, Theodore C., (2005)
-
Extracting Valuable Data from Classroom Trading Pits
Bergstrom, Theodore C., (2005)
- More ...