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Learning by Bidding: Evidence from a Large-Scale Natural Experiment

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  • Jan Hanousek
  • Evzen Kocenda

Abstract

Learning is a subject of intense research in experimental economics. We contribute to this debate by presenting persuasive evidence that learning took place among uninformed heterogeneous agents on a quasi-stock market during a large-scale natural experiment that by size, incentives, and variation belongs among the largest experiments ever conducted. To detect and quantify learning we develop new measures of individual performance during the bidding process when prices of goods vary over succeeding stages of bidding.

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Bibliographic Info

Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp247.

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Date of creation: Jan 2005
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Handle: RePEc:cer:papers:wp247

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Keywords: Learning; Natural experiment; Auction; Stock market; Privatization; Heterogeneous agents; Transition.;

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