Showing 1 - 3 of 3
We report an experiment designed to investigate markets with consumer search costs. In markets where buyers are matched with one seller at a time, sellers are predicted to sell at prices equal to buyers' valuations. However, we find sellers post prices that offer a more equal division of the...
Persistent link: https://www.econbiz.de/10005370805
Persistent link: https://www.econbiz.de/10005178737
We report the results of laboratory experiments on rent-seeking contests with endogenous participation. Theory predicts that (a) contest entry and rent-seeking expenditures increase with the size of the prize and (b) earnings are equalized between the contest and the outside option. While the...
Persistent link: https://www.econbiz.de/10010593368