This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Reputations in Markets With Asymmetric Information: A Classroom Game

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
James R. Wolf Jr. () (Illinois State University)
Mark A. Myerscough (Information Technology Director, Wilber and Associates, Bloomington, IL)
Abstract

The authors describe a classroom game used to teach students about the impact of reputations in markets with asymmetric information. The game is an extension of Holt and Sherman’s lemons market game and simulates a market under three information conditions. In the full information setting, all participants know both the quality and the price of the items for sale. In the second setting, sellers have better quality information than buyers. In the third setting, sellers maintain their information advantage, but buyers may post feedback on the sellers’ performance. The posted feedback generally increases buyer trust and disciplines sellers, resulting in higher levels of trade and higher average product quality. The game can be completed in one class period and includes discussion questions.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.journalofeconed.org/pdfs/fall2007/JECE_393-405.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Article provided by Helen Dwight Reid Foundation in its journal The Journal of Economic Education.

Volume (Year): 38 (2007)
Issue (Month): 4 ()
Pages: 393-405
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:jee:journl:v:38:y:2007:i:4:p:393-405

Contact details of provider:
Web page: http://www.heldref.org

Order Information:
Email:

For technical questions regarding this item, or to correct its listing, contact: (Andrew Ivers) The email address of this maintainer does not seem to be valid anymore. Please ask Andrew Ivers to update the entry or send us the correct address..

Related research
Keywords: asymmetric information; classroom game; reputation; trust;

Find related papers by JEL classification:
A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Shapiro, Carl, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, MIT Press, vol. 98(4), pages 659-79, November. [Downloadable!] (restricted)
  2. Charles A. Holt & Roger Sherman, 1999. "Classroom Games: A Market for Lemons," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 205-214, Winter. [Downloadable!] (restricted)
  3. Sanjeev Dewan & Vernon Hsu, 2004. "Adverse Selection In Electronic Markets: Evidence From Online Stamp Auctions," Journal of Industrial Economics, Blackwell Publishing, vol. 52(4), pages 497-516, December. [Downloadable!] (restricted)
  4. David Reiley, 2006. "Field Experiments on the Effects of Reserve Prices in Auctions: More Magic on the Internet," RAND Journal of Economics, The RAND Corporation, vol. 37(1), pages 195-211, Spring.
  5. Daniel Houser & John Wooders, 2006. "Reputation in Auctions: Theory, and Evidence from eBay," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 15(2), pages 353-369, 06. [Downloadable!] (restricted)
  6. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-41, August. [Downloadable!] (restricted)
  7. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August. [Downloadable!] (restricted)
  8. Dellarocas, Chrysanthos, 2003. "The Digitization of Word-of-mouth: Promise and Challenges of Online Feedback Mechanisms," Working papers 4296-03, Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
Full references

Statistics
Access and download statistics

Did you know? It is the publishers that input data about their publications, as there is no staff at RePEc.

This page was last updated on 2009-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.