We provide a simplified test to determine if choice data from a two-commodity consumption set satisfies the Generalized Axiom of Revealed Preference (GARP), and thus the preference or utility maximization hypothesis. We construct an algorithm for this test and illustrate its application on...

The minority game is an important example of a non-cooperative n-person game, which can be applied on different situations with social and economic contexts. We analysed the minority game as an elementary traffic scenario in which human participants had to choose 100 times between a road A and a...

The artificiality of a laboratory situation is placed in the context of the tension between external and internal validity. Most economists consider internal validity to be most important. A proper evaluation of the 'artificiality criticism' (a lack of external validity) requires distinguishing...

This paper reports the results of a laboratory experiment on network formation among heterogeneous agents. The experimental design extends the basic Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by allowing for agents with lower linking costs or higher...

Landberger et al. (2001) identified optimal bidder behavior in first- price private-value auctions when the ranking of valuations is common knowledge, and derived comparative-statics predictions regarding the auctioneer’s expected revenue and the efficiency of the allocation. The experiment...

We study collusive behaviour in experimental duopolies that compete in prices under dynamic demand conditions. In one treatment the demand grows at a constant rate. In the other treatment the demand declines at another constant rate. The rates are chosen so that the evolution of the demand in...

This paper provides a survey of recent experimental work in economics focusing on social and economic networks. The experiments consider networks of coordination and cooperation, buyer-seller networks, and network formation.

Not-for-profit enterprises often rely on donors for operating funds. Through fund-raising campaigns, individual donations are solicited, and the successes of fund-raising campaigns depend on various features of the campaign. In this article, the authors use experimental methods to investigate...

Unexpected variation in emissions can have an enormous impact on the prices of emission permits and the efficiency achieved in tradable permit markets. Shocks to emission levels can be correlated across firms; for example, most firms require more emission permits than planned for following a...