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experiments to test at least the basic assumptions of the economic theory of human behavior. This paper describes a simple … classroom experiment that serves as an empiricial test of Adam Smith's invisible- hand hypothesis. It demonstrates that … competition acts as a discovery procedure. The experiment is of high didactical value, since the students gain insights into …
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Our study proposes a novel mechanism to reduce information asymmetry about product quality between buyers and sellers. Product testing organizations like Consumer Reports (US) and Stiftung Warentest (Germany) seek to reduce this asymmetry by providing credible information. However, limited...
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We conducted a laboratory experiment to study the price setting behavior in two-sided markets. We seek to answer two …
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