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! ]

Self-interest, Social Wealth, and Competition as a Discovery Procedure

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Roland Kirstein (University of Saarland)
Dieter Schmidtchen (Universität des Saarlandes)

Additional information is available for the following registered author(s):

Abstract

In Economics, as in any social science, empirical tests of theoretical results face a problem: researchers are unable to reproduce the whole economy (or at least its relevant parts) in their laboratories. Nowadays, Experimental Economics uses stylized experiments, drawing on the experience of Psychology, to test at least the basic assumptions of the economic theory of human behavior. Even classroom experiments may serve this purpose. This paper describes a simple classroom experiment that serves as an empirical test of Adam Smith's invisible- hand hypothesis. Furthermore, it demonstrates to the students that competition acts as a discovery procedure. The experiment is of high didactical value, since the students gain insights into empirical research and experience how markets work.

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.bepress.com/cgi/viewcontent.cgi?article=1083&context=gwp
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Berkeley Electronic Press in its series German Working Papers in Law and Economics with number 2004-1-1083.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation:
Date of revision:
Handle: RePEc:bep:dewple:2004-1-1083

Note: oai:bepress:
Contact details of provider:
Web page: http://www.bepress.com/gwp/default/

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Hayek-Hypothesis; Efficiency; Double Oral Auctions;

Find related papers by JEL classification:
A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
D40 - Microeconomics - - Market Structure and Pricing - - - General

This paper has been announced in the following NEP Reports:

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. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70, pages 322. [Downloadable!] (restricted)
    Other versions:
  2. Smith, Vernon L, 1982. "Microeconomic Systems as an Experimental Science," American Economic Review, American Economic Association, vol. 72(5), pages 923-55, December. [Downloadable!] (restricted)
  3. David L. Dickinson, 2002. "A Bargaining Experiment to Motivate Discussion on Fairness," Journal of Economic Education, Helen Dwight Reid Foundation, vol. 33(2), pages 136-151. [Downloadable!]
  4. Bradley J. Ruffle, 2003. "Competitive Equilibrium and Classroom Pit Markets," Journal of Economic Education, Helen Dwight Reid Foundation, vol. 34(2), pages 123-138. [Downloadable!]
  5. Plott, Charles R, 1982. "Industrial Organization Theory and Experimental Economics," Journal of Economic Literature, American Economic Association, vol. 20(4), pages 1485-1527, December. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? The most prolific authors have over 700 items listed on IDEAS.

This page was last updated on 2009-11-28.

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.