IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Asynchrony and Learning in Serial and Average Cost Pricing Mechanisms: An Experimental Study

Listed author(s):
  • Chen, Yan
Registered author(s):

This paper reports the first experimental study of the serial and the average cost pricing mechanism under three different treatments: a complete information treatment and two treatments designed to simulate distributed systems like the Internet with extremely limited information, synchronous and asynchronous moves. Although both games are dominance-solvable and the proportion of equilibrium play is statistically indistinguishable under complete information, their performance does change dramatically in settings that resemble distributed systems: the serial mechanism performs robustly better than the average cost pricing mechanism both in terms of convergence to Nash/Stackelberg equilibrium and system efficiency. These results provide some support for Friedman and Shenker's (1997) new solution concepts for implementation on the Internet. Four payoff-based learning models are simulated in order to understand individual learning behavior in distributed systems. Under the serial mechanism the payoff-assessment learning model (Sarin and Vahid (1997)) provides the best fit to the data, followed by the experience-weighted attraction learning model (Camerer and Ho (1999)), which in turn, is followed by a simple reinforcement learning model and the responsive learning automata. Under the average cost pricing mechanism, both the experience-weighted attraction learning model and the reinforcement model track the data better than the responsive learning automata, however, other pair-wise rankings of the four models are statistically insignificant.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number 592.

in new window

Length: pages
Date of creation: Feb 1992
Handle: RePEc:bon:bonsfa:592
Contact details of provider: Postal:
Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany

Fax: +49 228 73 6884
Web page:

No references listed on IDEAS
You can help add them by filling out this form.

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

When requesting a correction, please mention this item's handle: RePEc:bon:bonsfa:592. 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: (BGSE Office)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.