Quantitative Restrictions In Experimental Posted-Offer Markets
AbstractThe effect of imposing binding and non-binding quantity restrictions upon price convergence in posted-offer markets is discussed. Unlike in the price control experiments prices do not jump after the removal of quantity restrictions. Further, a surprising property of prices was observed in these experiments, prices converge from below the competitive equilibrium. This result contradicted the well established empirical regularity that price convergence is from above the competitive equilibrium in Posted-Offer markets. Thus, the asymmetric distribution of surplus, or the imposition of quotas themselves affected price convergence in the quota experiments.
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Bibliographic InfoPaper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we036125.
Date of creation: Nov 2003
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Other versions of this item:
- Kujal, Praveen, 2008. "Quantitative Restrictions in Experimental Posted-offer Markets," Handbook of Experimental Economics Results, Elsevier.
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