Extracting Valuable Data from Classroom Trading Pits
AbstractHow 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 Experiments with Economic Principles , 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.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The Journal of Economic Education.
Volume (Year): 36 (2005)
Issue (Month): 3 (July)
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Web page: http://www.tandfonline.com/VECE20
Other versions of this item:
- Ted Bergstrom, 2004. "Extracting Valuable Data from Classroom Trading Pits," Experimental 0407002, EconWPA.
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
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.:
- Vernon L. Smith, 1962.
"An Experimental Study of Competitive Market Behavior,"
Journal of Political Economy,
University of Chicago Press, vol. 70, pages 111.
- Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70, pages 322.
- Ted Bergstrom, 2004. "Experimental Economics and Chamberlin's Excess Trading Conjecture," Experimental 0407001, EconWPA.
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