IDEAS home Printed from https://ideas.repec.org/a/nat/nathum/v4y2020i9d10.1038_s41562-020-0916-8.html
   My bibliography  Save this article

Evidence of general economic principles of bargaining and trade from 2,000 classroom experiments

Author

Listed:
  • Po-Hsuan Lin

    (California Institute of Technology
    MobLab)

  • Alexander L. Brown

    (Texas A&M University)

  • Taisuke Imai

    (LMU Munich)

  • Joseph Tao-yi Wang

    (National Taiwan University
    Center for Research in Econometric Theory and Applications)

  • Stephanie W. Wang

    (MobLab
    University of Pittsburgh)

  • Colin F. Camerer

    (California Institute of Technology)

Abstract

Standardized classroom experiments provide evidence about how well scientific results reproduce when nearly identical methods are used. We use a sample of around 20,000 observations to test reproducibility of behaviour in trading and ultimatum bargaining. Double-auction results are highly reproducible and are close to equilibrium predictions about prices and quantities from economic theory. Our sample also shows robust correlations between individual surplus and trading order, and autocorrelation of successive price changes, which test different theories of price dynamics. In ultimatum bargaining, the large dataset provides sufficient power to identify that equal-split offers are accepted more often and more quickly than slightly unequal offers. Our results imply a general consistency of results across a variety of different countries and cultures in two of the most commonly used designs in experimental economics.

Suggested Citation

  • Po-Hsuan Lin & Alexander L. Brown & Taisuke Imai & Joseph Tao-yi Wang & Stephanie W. Wang & Colin F. Camerer, 2020. "Evidence of general economic principles of bargaining and trade from 2,000 classroom experiments," Nature Human Behaviour, Nature, vol. 4(9), pages 917-927, September.
    • Handle: RePEc:nat:nathum:v:4:y:2020:i:9:d:10.1038_s41562-020-0916-8
    DOI: 10.1038/s41562-020-0916-8
    as

    Download full text from publisher

    File URL: https://www.nature.com/articles/s41562-020-0916-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1038/s41562-020-0916-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Itzhak Rasooly, 2022. "Competitive equilibrium and the double auction," Papers 2209.07532, arXiv.org.
    2. Itzhak Rasooly, 2022. "Competitive equilibrium and the double auction," Economics Series Working Papers 974, University of Oxford, Department of Economics.
    3. Po-Hsuan Lin, 2022. "Cognitive Hierarchies in Multi-Stage Games of Incomplete Information: Theory and Experiment," Papers 2208.11190, arXiv.org, revised Nov 2023.
    4. Barbara Ikica & Simon Jantschgi & Heinrich H. Nax & Diego G. Nuñez Duran & Bary S. R. Pradelski, 2023. "Competitive Market Behavior: Convergence And Asymmetry In The Experimental Double Auction," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(3), pages 1087-1126, August.
    5. Sabiou M. Inoua & Vernon L. Smith, 2022. "Perishable goods versus re-tradable assets: A theoretical reappraisal of a fundamental dichotomy," Chapters, in: Sascha Füllbrunn & Ernan Haruvy (ed.), Handbook of Experimental Finance, chapter 15, pages 162-171, Edward Elgar Publishing.
    6. Tirza J. Angerhofer & Roger D. Blair, 2021. "Successive Monopoly, Bilateral Monopoly and Vertical Mergers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(2), pages 343-361, September.

    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:nat:nathum:v:4:y:2020:i:9:d:10.1038_s41562-020-0916-8. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.nature.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.