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An Experimental Study of Competitive Market Behavior
... Instead of Chamberlin's unstructured design, Smith used a double oral auction (DOA) scheme in which both buyers and sellers call out bids or offers which an auctioneer recognizes [17]. Transactions resulting from accepted bids and offers are recorded. ...
... As noted by Daniel Friedman [7], the results in [17], replicated many times, are something of a mystery. How is it that the agents in the DOA overcome the impediments of both private information and strategic uncertainty to arrive at the Walrasian equilibrium? ...
... We should emphasize that agents acting based on some random process is different from agents being strategically uncertain. In particular, for the participants of the original DOA experiment (of [17]), there is no a priori reason to believe that they were following some specific random procedure during the experiment. On the contrary, as stated in Friedman's conjecture, there are clever and not-so-clever participants, and hence different agents could have completely different strategies and their strategies might even change when, for instance, seeing more agents matching with each other, or by observing the strategies of other agents. ...
A classical trading experiment consists of a set of unit demand buyers and unit supply sellers with identical items. Each agent's value or opportunity cost for the item is their private information and preferences are quasi-linear. Trade between agents employs a double oral auction (DOA) in which both buyers and sellers call out bids or offers which an auctioneer recognizes. Transactions resulting from accepted bids and offers are recorded. This continues until there are no more acceptable bids or offers. Remarkably, the experiment consistently terminates in a Walrasian price. The main result of this paper is a mechanism in the spirit of the DOA that converges to a Walrasian equilibrium in a polynomial number of steps, thus providing a theoretical basis for the above-described empirical phenomenon. It is well-known that computation of a Walrasian equilibrium for this market corresponds to solving a maximum weight bipartite matching problem. The uncoordinated but rational responses of agents thus solve in a distributed fashion a maximum weight bipartite matching problem that is encoded by their private valuations. We show, furthermore, that every Walrasian equilibrium is reachable by some sequence of responses. This is in contrast to the well known auction algorithms for this problem which only allow one side to make offers and thus essentially choose an equilibrium that maximizes the surplus for the side making offers. Our results extend to the setting where not every agent pair is allowed to trade with each other.
... İktisat biliminde farklı piyasa yapılarının analizine yönelik olarak organizasyon düzeyinde deneyler yapılabildiği gibi, bireysel karar ve davranışları incelemeye yönelik birey düzeyinde de deneyler yapılabilmektedir. Organizasyon düzeyindeki deneylere Chamberlin (1948) öncülük etmiş ve daha sonra deneysel iktisada katkılarından dolayı Kahneman ile birlikte Nobel Ekonomi Ödülü almaya layık görülen Smith (1962) yine bu alanda büyük ses getirmiştir. Sonraki yıllarda Tucker ve Nash'in çalışmaları başta olmak üzere oyun teorisi alanındaki gelişmeler de deneysel iktisat çalışmalarına önemli ölçüde katkı sunmuştur. ...
zet Hangi gelişmişlik düzeyinde olursa olsun, her ekonominin temel amaçları arasında büyüme, kalkınma ve istihdam mutlaka bulunmaktadır. Bu amaçlara ulaşmada toplumu oluşturan iki önemli parçadan biri olan kadınların rolü de elbette çok önemlidir. Bir başka deyişle, sürdürülebilir kalkınma hedeflerine ulaşmada toplumun tüm kesimlerinin katkısına ihtiyaç duyulmaktadır. Diğer yandan her sağlıklı kadın, her ay hormonal değişimler yaşamakta ve ilgili çalışmalar, bu hormon değişimlerinin iktisadi karar ve davranışlar üzerinde etkili olduğunu ortaya koymaktadır. Bu çalışmanın amacı, bibliyometrik bir analiz ile menstrüel döngünün, iktisadi karar ve davranışlara etkilerinin değerlendirilmesine katkı sağlayan literatürü, özellikle deneysel iktisat bağlamında tanıtmaktır. Çalışmadaki değerlendirmeler, sürdürülebilir kalkınma, toplumsal cinsiyet eşitliği, büyüme, istihdam ve hatta tıbbi çalışmalar açısından önem taşımaktadır. Bibliyometrik analiz bulguları, menstrüel döngüye ilişkin çalışmalarda coğrafi özelliklerin pek de önemli olmadığına işaret etmektedir. Abstract Regardless of the level of development, growth, development, and employment are among the main objectives of every economy. Of course, the role of women, one of the two important parts of society in achieving these goals, is also very important. In other words, the contribution of all segments of society is needed to achieve sustainable development goals. On the other hand, every healthy woman experiences hormonal changes every month, and relevant studies reveal that these hormonal changes have an impact on economic decisions and behaviours. The aim of this study is to introduce the literature that contributes to the evaluation of the effects of the menstrual cycle on economic decisions and behaviours through a bibliometric analysis, especially in the context of experimental economics. The evaluations in the study are important in terms of sustainable development, gender equality, growth, employment, and even medical studies. The findings of the bibliometric analysis indicate that geographic characteristics are of insignificance in studies on the menstrual cycle.
... In economics, double auction is one of the most widely used mechanisms in all kinds of markets including stock exchanges and business-to-business e-commerce. The convergence and efficiency properties of the double auction institution has also been the subject of intense interest among experimental economists, beginning with the work of Smith [9], who built on the early work of Chamberlin [10]. In experimental economics, people have in recent years designed computer-based agent models to study these properties. ...
Real world markets display power-law features in variables such as price fluctuations in stocks. To further understand market behavior, we have conducted a series of market experiments on our web-based prediction market platform which allows us to reconstruct transaction networks among traders. From these networks, we are able to record the degree of a trader, the size of a community of traders, the transaction time interval among traders and other variables that are of interest. The distributions of all these variables show power-law behavior. On the other hand, agent-based models have been proposed to study the properties of real financial markets. We here study the statistical properties of these agent-based models and compare them with the results from our web-based market experiments. In this work, three agent-based models are studied, namely, zero-intelligence (ZI), zero-intelligence-plus (ZIP) and Gjerstad-Dickhaut (GD). Computer simulations of variables based on these three agent-based models were carried out. We found that although being the most naive agent-based model, ZI indeed best describes the properties observed in real markets. Our study suggests that the basic ingredient to produce the observed properties from real world markets could in fact be the result of a continuously evolving dynamical system with basic features similar to the ZI model.
... Vernon Smith's work surprised the profession because it showed that a theoretical prediction of the perfect competition model -market efficiency (prices in line with production costs) -can be reproduced even outside the model's orthodox but restrictive assumptions of perfect information and the presence of many buyers and sellers. In fact, Smith's (1962) experiments showed that markets produce efficient allocations with as few as two buyers and sellers even when information is incomplete and asymmetric. The predictions of conventional economic models regarding market efficiency seemed to hold in the laboratory despite other experimental evidence that agents violate the assumptions underlying those same models. ...
The humanomics model of human behavior suggests that individuals act not merely to maximize narrow conceptions of their own self-interest but instead are motivated by fellow feeling and a desire to act in a praiseworthy way. Because they learn what is praise- and blameworthy from face-to-face exchanges in moral communities to which they belong, the same conceptions and norms carry into impersonal exchanges in the extended market order. Humanomics offers a framework that can reconcile conflicting results from laboratory experiments involving personal and impersonal exchanges. In this paper, we seek to apply the humanomics lens to human action in politics. Public choice scholarship applies assumptions from economics to explain human action in the political sphere. But just like traditional economics models, several puzzles remain unexplained. We argue that a humanomics perspective offers a framework for explaining existing public choice puzzles just as it does for puzzles in economics more broadly.
This article investigates the potential for advancing experimental economics through the implementation of collective experiments. Historically, the discipline was deemed unsuitable for experimentation. However, the maturation of its theoretical and technical foundations eventually facilitated the integration of experimental methods. Despite these developments, the study of collective processes remains largely underexplored in experimental economics. This gap stems from historical, methodological, and technological barriers that have limited the development of
protocols tailored to collective experiments. The article emphasizes the transformative potential of minimizing intermediaries and leveraging innovative tools to gain deeper insights into collective dynamics and processes. It concludes by advocating rethinking research infrastructures, i.e, experimental laboratories, to support this emerging methodological framework, opening new avenues for understanding collective behaviors in controlled experimental settings.
Experiments have gained prominence in sociology in recent years. Increased interest in testing causal theories through experimental designs has ignited a debate about which experimental designs can facilitate scientific progress in sociology. This book discusses the implications of research interests for the design of experiments, identifies points of commonality and disagreement among the different perspectives within sociology, and elaborates on the rationales of each. It helps experimental sociologists find appropriate designs for answering specific research questions while alerting them to the challenges. Offering more than just a guide, this book explores both the historical roots of experimental sociology and the cutting-edge techniques of rigorous sociology. It concludes with a tantalizing peek into the future and provides a roadmap to the exciting prospects and uncharted territories of experimental sociology.
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