IDEAS home Printed from https://ideas.repec.org/p/feb/artefa/00082.html
   My bibliography  Save this paper

Testing neoclassical competitive market theory in the field

Author

Listed:
  • John List

Abstract

Walrasian tatonnement has been a fundamental assumption in economics ever since Walras' general equilibrium theory was introduced in 1874. Nearly a century after its introduction, Vernon Smith relaxed the Walrasian tatonnement assumption by showing that neoclassical competitive market theory explains the equilibrating forces in ""double- auction"" markets. I make a next step in this evolution by exploring the predictive power of neoclassical theory in decentralized naturally occurring markets. Using data gathered from two distinct markets--the sports card and collector pin markets--I find a tendency for exchange prices to approach the neoclassical competitive model prediction after a few market periods.

Suggested Citation

  • John List, 2002. "Testing neoclassical competitive market theory in the field," Artefactual Field Experiments 00082, The Field Experiments Website.
    • Handle: RePEc:feb:artefa:00082
    as

    Download full text from publisher

    File URL: http://s3.amazonaws.com/fieldexperiments-papers2/papers/00082.pdf
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Giuseppe Attanasi & Samuele Centorrino & Elena Manzoni, 2020. "Zero-Intelligence vs. Human Agents: An Experimental Analysis of the Efficiency of Double Auctions and Over-the-Counter Markets of Varying Sizes," Working Papers 05/2020, University of Verona, Department of Economics.
    2. John A. List, 2014. "Using Field Experiments to Change the Template of How We Teach Economics," The Journal of Economic Education, Taylor & Francis Journals, vol. 45(2), pages 81-89, June.
    3. John List, 2023. "2022: A Summary Of Artefactual Field Experiments On Fieldexperiments.Com: The Who'S, What'S, Where'S, And When'S," Artefactual Field Experiments 00767, The Field Experiments Website.
    4. John List, 2020. "2020: A Summary of Artefactual Field Experiments on fieldexperiments.com: The Who's, What's, Where's, and When's," Artefactual Field Experiments 00721, The Field Experiments Website.
    5. Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31.
    6. Bulte, Erwin & Kontoleon, Andreas & List, John & Turley, Ty & Voors, Maarten, 2017. "From personalized exchange towards anonymous trade: A field experiment on the workings of the invisible hand," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 313-330.
    7. Attanasi, Giuseppe & Centorrino, Samuele & Moscati, Ivan, 2016. "Over-the-counter markets vs. double auctions: A comparative experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 22-35.
    8. John List, 2023. "2022: A Summary Of Framed Field Experiments On Fieldexperiments.Com: The Who'S, What'S, Where'S, And When'S," Framed Field Experiments 00768, The Field Experiments Website.
    9. Levitt, Steven D. & List, John A., 2009. "Field experiments in economics: The past, the present, and the future," European Economic Review, Elsevier, vol. 53(1), pages 1-18, January.
    10. John List, 2019. "A Summary of Artefactual Field Experiments On fieldexperiments.com: The Who's, What's, Where's, and When's," Artefactual Field Experiments 00671, The Field Experiments Website.
    11. John List, 2020. "2020: A Summary of Framed Field Experiments on fieldexperiments.com: The Who's, What's Where's, and When's," Framed Field Experiments 00716, The Field Experiments Website.
    12. John List, 2019. "A Summary Of Papers On Fieldexperiments.Com: All Field Experiments Posted," Artefactual Field Experiments 00650, The Field Experiments Website.
    13. John List, 2019. "Summary Data of Natural Field Experiments Published on fieldexperiments.com," Natural Field Experiments 00677, The Field Experiments Website.
    14. John A. List, 2004. "Testing Neoclassical Competitive Theory in Multilateral Decentralized Markets," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 1131-1156, October.
    15. John List, 2002. "Testing neoclassical competitive market theory in the field: Some pilot results," Framed Field Experiments 00172, The Field Experiments Website.
    16. Jeffrey Flory & Uri Gneezy & Kenneth Leonard & John List, 2012. "Sex, competitiveness, and investment in offspring: On the origin of preferences," Artefactual Field Experiments 00072, The Field Experiments Website.
    17. Margherita Comola & Marcel Fafchamps, 2015. "An Experimental Study of Decentralized Link Formation with Competition," NBER Working Papers 21758, National Bureau of Economic Research, Inc.

    More about this item

    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:feb:artefa:00082. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: David Franks (email available below). General contact details of provider: http://www.fieldexperiments.com .

    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.