In recent years, there has been a growing interest in policy applications of different auction systems. This paper reports on a series of experiments that were used to design and implement an auction in a unique policy-making environment. In April, 2000, the Georgia legislature passed a unique...

Frontmatter -- Contents -- Preface -- Acknowledgments -- CHAPTER 1 INTRODUCTION AND OVERVIEW -- CHAPTER 2 DECISIONS AND GAMES -- CHAPTER 3 DOUBLE-AUCTION MARKETS -- CHAPTER 4 POSTED-OFFER MARKETS -- CHAPTER 5 BARGAINING AND AUCTIONS -- Chapter 6 PUBLIC GOODS, EXTERNALITIES, AND VOTING -- Chapter...

This chapter focuses on the information cascade experiments. The concept of an information cascade can be explained in the context of a specific numerical example that was used in initial laboratory experiments. The predictions are publicly announced as they are made, but individuals are not...