Bargaining and Market Behavior
Essays in Experimental Economics

A collection of papers by Vernon L. Smith including many of his contributions on bargaining and market behavior between 1990 and 1998.

Vernon L. Smith (Author)

9780521584500, Cambridge University Press

Hardback, published 12 June 2000

474 pages, 93 b/w illus. 64 tables
22.9 x 15.2 x 3 cm, 0.86 kg

This second Cambridge University Press collection of papers by Vernon L. Smith, a creator of the field of experimental economics, includes many of his primary authored and coauthored contributions on bargaining and market behavior between 1990 and 1998. The essays explore the use of laboratory experiments to test propositions derived from economics and game theory. They also investigate the relationship between experimental economics and psychology, particularly the field of evolutionary psychology, using the latter to broaden the perspective in which experimental results are interpreted. The volume complements Professor Smith's earlier work by demonstrating the importance of institutional features of markets in understanding behavior and market performance. Specific themes investigated include rational choice, the notion of fairness, game theory and extensive form experimental interactions, institutions and market behavior, and the study of laboratory stock markets.

Part I: 1. Rational choice: the contrast between economics and psychology
2. Experimental tests of the endowment effect
3. Monetary rewards and decision costs in experimental economics
4. Fairness, effect on temporary and equilibrium prices in posted-offer markets
Part II. Bargaining theory, Behavior and Evolutionary Psychology: 5. Preferences, property rights and anonymity in bargaining games
6. Social distance and other regarding behavior in dictator games
7. On expectations and monetary stakes in ultimatum games
8. Game theory and reciprocity in some extensive form experimental games
9. Behavioral foundations of reciprocity: experimental economics and psychology
Part III. Institutions and Markets: 10. Reflections on some experimental market mechanisms for classical environments
11. Experimental methods in the political economy of exchange
12. Individual rationality, market rationality, and value estimation
13. Market contestability in the presence of sunk costs
14. The boundaries of competitive price theory: expectations, convergence and transaction cost
15. Off-floor trading, disintegration and the Bid-Ask spread in experimental markets
16. Bertrand–Edgeworth competition in experimental markets
17. An experimental examination of the Walrasian Tatonnement mechanism
Part IV. Stock Markets and Bubbles: 18. Stock markets bubbles in the laboratory.

Subject Areas: Economic theory & philosophy [KCA]