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In this paper we experimentally test a theory of boundedly rational behavior in a "lemons market." We analyzed two … empirical observations deviate substantially from these predictions of rational choice theory: Even after 20 repetitions, the …
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This paper challenges the increasingly common view that the findings of behavioural economics constitute a fourth type of market failure. The market failure framework elevates the standard competitive market model to the status of an ideal. It provides us with tools to identify departures from...
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