IDEAS home Printed from https://ideas.repec.org/a/taf/jeduce/v36y2005i3p220-235.html
   My bibliography  Save this article

Extracting Valuable Data from Classroom Trading Pits

Author

Listed:
  • Theodore C. Bergstrom
  • Eugene Kwok

Abstract

How 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.

Suggested Citation

  • Theodore C. Bergstrom & Eugene Kwok, 2005. "Extracting Valuable Data from Classroom Trading Pits," The Journal of Economic Education, Taylor & Francis Journals, vol. 36(3), pages 220-235, July.
    • Handle: RePEc:taf:jeduce:v:36:y:2005:i:3:p:220-235
    DOI: 10.3200/JECE.36.3.220-235
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3200/JECE.36.3.220-235
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.3200/JECE.36.3.220-235?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert E. Kuenne (ed.), 1990. "Microeconomics," Books, Edward Elgar Publishing, volume 0, number 564.
    2. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70, pages 111-111.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. So, Tony, 2020. "Classroom experiments as a replication device," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 86(C).
    2. Marcus Giamattei & Humberto Llavador, 2017. "Teaching microeconomic principles with smartphones – lessons from classroom experiments with classEx," Working Papers 996, Barcelona School of Economics.
    3. Miller, John H. & Tumminello, Michele, 2015. "Bazaar economics," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 163-181.
    4. Ted Bergstrom, 2004. "Experimental Economics and Chamberlin's Excess Trading Conjecture," Experimental 0407001, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephen Leider & William S. Lovejoy, 2016. "Bargaining in Supply Chains," Management Science, INFORMS, vol. 62(10), pages 3039-3058, October.
    2. Brice Corgnet & Cary Deck & Mark Desantis & Kyle Hampton & Erik O Kimbrough, 2019. "Reconsidering Rational Expectations and the Aggregation of Diverse Information in Laboratory Security Markets," Working Papers halshs-02146611, HAL.
    3. Khalid Saeed, 2014. "Jay Forrester's operational approach to economics," System Dynamics Review, System Dynamics Society, vol. 30(4), pages 233-261, October.
    4. Omar Al-Ubaydli & John List & Claire Mackevicius & Min Sok Lee & Dana Suskind, 2019. "How Can Experiments Play a Greater Role in Public Policy? 12 Proposals from an Economic Model of Scaling," Artefactual Field Experiments 00679, The Field Experiments Website.
    5. Halim, Edward & Riyanto, Yohanes Eko & Roy, Nilanjan, 2016. "Price Dynamics and Consumption Smoothing in Experimental Asset Markets," MPRA Paper 71631, University Library of Munich, Germany.
    6. Chaudhuri, Ananish, 2016. "Misbehaving: The Making of Behavioral Economics by Richard H. Thaler, W.W. Norton and Company, New York, 2015, xvi + 415 pp., Hardcover, USD 27.95, ISBN: 978-0-393-08094-0," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 60(C), pages 64-65.
    7. John A. List, 2024. "Optimally generate policy-based evidence before scaling," Nature, Nature, vol. 626(7999), pages 491-499, February.
    8. Omar Al-Ubaydli & John A. List, 2019. "How natural field experiments have enhanced our understanding of unemployment," Nature Human Behaviour, Nature, vol. 3(1), pages 33-39, January.
    9. Marie-Claire Villeval, 2007. "Experimental Economics: Contributions, Recent Developments, and New Challenges," Working Papers 0706, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    10. Keser Claudia & Gaudeul Alexia, 2016. "Foreword: Special Issue in Honor of Reinhard Selten’s 85th Birthday," German Economic Review, De Gruyter, vol. 17(3), pages 277-283, August.
    11. Christoph Huber & Christian König-Kersting, 2022. "Experimenting with Financial Professionals," Working Papers 2022-07, Faculty of Economics and Statistics, Universität Innsbruck.
    12. Menkhaus, Dale J. & Bastian, Christopher T. & Yakunina, Alla V. & Esipov, Victor E., 1997. "Helping Russian Students See the Invisible Hand," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35755, Western Agricultural Economics Association.
    13. Crockett, Sean & Spear, Stephen & Sunder, Shyam, 2008. "Learning competitive equilibrium," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 651-671, July.
    14. Leitner, Johannes & Leopold-Wildburger, Ulrike, 2011. "Experiments on forecasting behavior with several sources of information - A review of the literature," European Journal of Operational Research, Elsevier, vol. 213(3), pages 459-469, September.
    15. Omar Al-Ubaydli & John List, 2016. "Field Experiments in Markets," Artefactual Field Experiments j0002, The Field Experiments Website.
    16. He, Haoran & Wu, Keyu, 2016. "Choice set, relative income, and inequity aversion: An experimental investigation," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 177-193.
    17. Brice Corgnet & Mark DeSantis & Christoph Siemroth, 2023. "Algorithmic Trading, Price Efficiency and Welfare: An Experimental Approach," Working Papers 2313, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    18. Roberto Savona & Maxence Soumare & Jørgen Vitting Andersen, 2015. "Financial Symmetry and Moods in the Market," PLOS ONE, Public Library of Science, vol. 10(4), pages 1-21, April.
    19. Kimbrough, Erik O. & Smyth, Andrew, 2018. "Testing the boundaries of the double auction: The effects of complete information and market power," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 372-396.
    20. Ernst Fehr & Klaus M. Schmidt, "undated". "Theories of Fairness and Reciprocity - Evidence and Economic Applications," IEW - Working Papers 075, Institute for Empirical Research in Economics - University of Zurich.

    More about this item

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jeduce:v:36:y:2005:i:3:p:220-235. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/VECE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.