Description

Experimental methods in economics respond to circumstances that are not completely dictated by accepted theory or outstanding problems. While the field of economics makes sharp distinctions and produces precise theory, the work of experimental economics sometimes appear blurred and may produce results that vary from strong support to little or partial support of the relevant theory. At a recent conference, a question was asked about where experimental methods might be more useful than field methods. Although many cannot be answered by experimental methods, there are questions that can only be answered by experiments. Much of the progress of experimental methods involves the posing of old or new questions in a way that experimental methods can be applied. The title of the book reflects the spirit of adventure that experimentalists share and focuses on experiments in general rather than forcing an organization into traditional categories that do not fit. The emphasis reflects the fact that the results do not necessarily demonstrate a consistent theme, but instead reflect bits and pieces of progress as opportunities to pose questions become recognized. This book is a result of an invitation sent from the editors to a broad range of experimenters asking them to write brief notes describing specific experimental results. The challenge was to produce pictures and tables that were self-contained so the reader could understand quickly the essential nature of the experiments and the results.

Table of Contents

INTRODUCTION 1. MARKETS 1.1 INSTITUTIONAL ENVIRONMENTS 1.1.1 Properties of the double auction Charles R. Plott. "Properties of Disequilibrium Adjustment in Double Auction Markets" Peter Bossaerts and Charles R. Plott, "From Market Jaws to the Newton Method: The Geometry of How A Market Can Solve Systems of Equations" Vernon L. Smith and Mark Van Boening, "Exogenous Uncertainty Increases the Bid-Ask Spread in the Continuous Double Auction" Paul J. Brewer, "Zero Intelligent Robots and the Double Auction Market: A Graphical Tour" Vernon Smith and Arlington Williams, "Effect of Non-binding Price Controls in Double Auction Trading" 1.1.2 Properties of posted offer processes Praveen Kujal and Vernon L. Smith, "Fairness and Short Run Price Adjustments in Posted Offer Markets" D.Davis and Bart J. Wilson, "Mixed Strategy Nash Equilibrium Predictions as a Means of Organizing Behavior in Posted-Offer Market Experiments" J.B. Kruse, "Simulated and Real Buyers in Posted Offer Markets" Stuart Mestelman, "The Performance of Double-Auction and Posted-Offer Markets with Advanced Production" 1.1.3 Call markets and sealed bids Vernon L. Smith, "Strategy-Proof Equilibrium Behavior in Two-Sided Auctions" James C. Cox, "First Price Independent Private Values Auctions" 1.1.4 Alternative market institutions Corinne Bronfman, Kevin McCabe, David Porter, Stephen Rassenti and Vernon L. Smith, "The Walrasian Auction" Dan Friedman

Details

No. of pages:
1184
Language:
English
Copyright:
© 2008
Published:
Imprint:
North Holland
Electronic ISBN:
9780080887968
Print ISBN:
9780444826428

About the editors

Charles Plott

Edward S. Harkness Professor of Economics and Political Science Fellow of the American Academy of Arts and Sciences Fellow of the Econometric Society Diplôme Docteur honoris causa, L'université Pierre Mendès (France), 1996 Doctor of Letters honoris causa, Purdue University , 1995

Vernon Smith

Vernon L. Smith, Nobel Prize winner in Economics, 2002, is currently Professor of Economics and Law at George Mason University, a research scholar in the Interdisciplinary Center for Economic Science, and a Fellow of the Mercatus Center all in Arlington, VA. He received his bachelor's degree in Electrical Engineering from Cal Tech, and his Ph.D. in Economics from Harvard. He has authored or co-authored over 200 articles and books on capital theory, finance, natural resource economics and experimental economics.

Reviews

"For anyone interested in experimental economics this is a book that one should have on one’s shelf.  Plott and Smith have assembled a collection of papers that illustrate the power of experimental methods for understanding the appropriate role of markets and other institutions for dealing with real-world problems. "

--Howard Kunreuther, Wharton School, University of Pennsylvania

 

"Plott and Smith have provided an incisive and instructive summary of the results and methods of experimental economics, and a comprehensive handbook of experimental methods and findings from applied mechanism design to the study of behavior and interaction of economic agents.

This handbook is an outstanding introduction to the experimental methods that are transforming economics, and an essential addition to the bookshelf of every economist interested in understanding and participating in this emerging field."

--Daniel L. McFadden, University of California, Berkeley