This paper reports on the results of three experiments based on the neoclassical theory of consumer behavior. All these experiments were carried out with the aim of simulating real-world behavior. Nonparametric tests, applying the theory of revealed preference, show that a significant number of...

We explore the role played by trade costs for the home bias in trade. In a series of Cournot duopoly experiments with a home and an export market, we compare output choices when firms face different levels of export costs. We find that there is two-way trade in identical products and that firms...