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...

This article explores the use of alternative payment mechanisms to overcome the holdout problem when multiple parcels of land must be acquired to complete a real-estate development project. Purchase offers contingent upon successful land aggregation are compared to combination offers containing...

The baseball card industry provides a case study of survival in a declining industry. The case study shows how manufacturers have varied their strategic behavior in response to changes that have occurred within the industry in the last 20 years. This is in stark contrast to most of the existing...

Jump bidding is a commonly observed phenomenon that involves bidders in ascending auctions submitting bids higher than required by the auctioneer. Such behavior is typically explained as due to irrationality or to bidders signaling their value. We present field data that suggests such...

This article presents a classroom game that allows students to directly experience the welfare improvements that can result from price discrimination. The demonstration uses a very familiar decision-making scenario, campus parking, to introduce the concept of price discrimination as well as...

Reputation effects have been thought to influence how candidates in an election are viewed by the electorate. Using data from Major League Baseball, I attempt to quantify the effect that reputation plays in voting for the Gold Glove award. While the award is designed to reflect current-year...

An oft-neglected pattern of behavior occurs when firms time the release of their products so that they are not released on the same date. The practice is potentially collusive, so there may be legitimate antitrust concerns. This paper presents a model of this behavior, the alternating periods...

We experimentally study the effect of alternative campaign finance systems - as characterized by different information structure about donors - on donations, election outcomes, political candidates' policy choices, and welfare. Three alternative campaign finance systems are considered: a full...