Oprea, RYan; Wilson, Bart J.; Zillante, Artie - Economic Science Institute (ESI), Argyros School of … - 2008
We report an experiment designed to study whether inecient rms are systematically driven from overcrowded markets. We implement a series of 3800 wars of attrition of a type modeled in Fudenberg and Tirole (1986). Exit tends to be ecient and exit times conform reasonably well to point predictions...