Advanced Search
MyIDEAS: Login to save this paper or follow this series

Exchange and Specialization as a Discovery Process

Contents:

Author Info

  • Sean Crockett
  • Vernon Smith
  • Bart Wilson

    ()
    (Interdisciplinary Center for Economic Science, George Mason University)

Abstract

In this paper we study the performance of an economic environment that can support specialization if the participants implement and develop some system of exchange. We define a closed economy in which the participants must discover the ability to exchange, implement it, and ascertain what they are comparatively advantaged in producing. Many people demonstrate the ability to find comparative advantage, capture gains from trade, and effectively choose production that is consistent with the choices of others. However, many do not become specialists, even though full efficiency can only be achieved if everyone does so. Near-full efficiency does occur bilaterally in these economies, typically because some individuals have entered a stable trading relationship with a specialist in the other good. Such pairing does not necessarily give impetus to the formation of other pairs, nor are pairs open to the inclusion of a third party. We explore various treatments to provide insight into the conditions that might foster the growth of specialization and exchange within this austere institutional framework. We find one treatment that achieves high levels of efficiency in half of the sessions.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. 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://repec.ices-experiments.org/pdf/1002.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Stan Tsirulnikov)
File Function: Latest version, 2006
Download Restriction: no

Bibliographic Info

Paper provided by George Mason University, Interdisciplinary Center for Economic Science in its series Working Papers with number 1002.

as in new window
Length: 36 pages
Date of creation: May 2006
Date of revision: May 2006
Handle: RePEc:gms:wpaper:1002

Contact details of provider:
Postal: 3330 Washington Blvd., Arlington, VA 22201
Phone: 703-993-4850
Fax: 703-993-4851
Email:
Web page: http://ices.gmu.edu/
More information through EDIRC

Related research

Keywords: specialization; exchange and production economies; experimental economics;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. Sean Crockett & Vernon Smith & Bart Wilson, 2006. "Exchange and Specialization as a Discovery Process," Working Papers 1002, George Mason University, Interdisciplinary Center for Economic Science, revised May 2006.
  2. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
  3. Daniel Houser & David Reiley & Michael Urbancic, 2004. "Checking Out Temptation: An Natural Experiment with Purchases at the Grocery Register," Working Papers 1001, George Mason University, Interdisciplinary Center for Economic Science, revised Nov 2008.
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 in new window

Cited by:
  1. Shachat, Jason & Zhang, Zhenxuan, 2012. "The Hayek hypothesis and long run competitive equilibrium: an experimental investigation," MPRA Paper 39579, University Library of Munich, Germany.
  2. Taylor Jaworski & Vernon Smith & Bart Wilson, 2010. "Discovering Economics in the Classroom with Experimental Economics and the Scottish Enlightenment," International Review of Economic Education, Economics Network, University of Bristol, vol. 9(2), pages 10-33.
  3. Joy Buchanan & Bart Wilson, 2014. "An Experiment on Protecting Intellectual Property," Working Papers 1044, George Mason University, Interdisciplinary Center for Economic Science.
  4. Taylor Jaworski & Bart J. Wilson, 2013. "Go West Young Man: Self-Selection and Endogenous Property Rights," Southern Economic Journal, Southern Economic Association, vol. 79(4), pages 886-904, April.
  5. Sean Crockett & VernonL. Smith & BartJ. Wilson, 2009. "Exchange and Specialisation as a Discovery Process," Economic Journal, Royal Economic Society, vol. 119(539), pages 1162-1188, 07.
  6. Bart J. Wilson, 2012. "Contra Private Fairness," American Journal of Economics and Sociology, Wiley Blackwell, vol. 71(2), pages 407-435, 04.
  7. Bart J. Wilson & Taylor Jaworski & Karl E. Schurter & Andrew Smyth, 2012. "The Ecological and Civil Mainsprings of Property: An Experimental Economic History of Whalers' Rules of Capture," Journal of Law, Economics and Organization, Oxford University Press, vol. 28(4), pages 617-656, October.
  8. Kimbrough, Erik O. & Wilson, Bart J., 2013. "Insiders, outsiders, and the adaptability of informal rules to ecological shocks," Ecological Economics, Elsevier, vol. 90(C), pages 29-40.
  9. Cary Deck, 2009. "An experimental analysis of cooperation and productivity in the trust game," Experimental Economics, Springer, vol. 12(1), pages 1-11, March.
  10. Kimbrough, Erik O., 2011. "Heuristic learning and the discovery of specialization and exchange," Journal of Economic Dynamics and Control, Elsevier, vol. 35(4), pages 491-511, April.
  11. Tyler Watts, 2010. "Arbitrage and knowledge," The Review of Austrian Economics, Springer, vol. 23(1), pages 79-96, March.
  12. Kimbrough, Erik O. & Smith, Vernon L. & Wilson, Bart J., 2010. "Exchange, theft, and the social formation of property," Journal of Economic Behavior & Organization, Elsevier, vol. 74(3), pages 206-229, June.
  13. Zhao, Liang & Zhu, Xian Chen, 2007. "A Discussion on Empirical Micro-Bases of Hayek’s Methodological Individualism," MPRA Paper 3862, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:gms:wpaper:1002. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stan Tsirulnikov).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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