Chapter 1. Introduction -- Chapter 2. Rediscovering Classical Economics in the Laboratory -- Chapter 3. Price Formation: Overview of the Theory -- Chapter 4. Price Formation: Partial Equilibrium -- Chapter 5. Price Formation: General Equilibrium -- Chapter 6. Financial Instability: Re-tradable...

We develop and experimentally test a model of endogenous entry, exit, and bidding in common value auctions. The model and experimental design include an alternative profitable activity (a “safe havenâ€) that provides agent-specific opportunity costs of bidding in the auction. Each agent...

With increasing numbers of consumers in auction marketplaces, we highlight some recent approaches that bring additional economic, social, and psychological factors to bear on existing economic theory to better understand and explain consumers' behavior in auctions. We also highlight specific...

Published as:"The Nature of Common-Pool Resource Problems," Rationality and Society 2(3), July 1990, 335-358."A large, multidisciplinary literature focuses on the problems occurring when multiple individuals concurrently use common-pool resources such as fisheries, grazing areas, airsheds, oil...

"Over the past 30 years, applied microeconomics has seen an explosion in the use of experimental methods as a tool for observing economic behavior. Economic experiments serve as a complement to field research using, allowing the researcher to create and control key theoretically based rules of...

"Laboratory experiments have generally supported the fundamental theorem that, in classical property rights environments, noncooperative behavior in large group markets yields efficient social outcomes. Experiments, however, regularly fail to support the game theoretic prediction of...

It is well-known in evolutionary game theory that population clustering in Prisoner's Dilemma games allows some cooperative strategies to invade populations of stable defecting strategies. We adapt this idea of population clustering to a two-person trust game. Without knowing it, players are...

This laboratory experiment explores the extent to which impersonal exchange emerges from personal exchange with opportunities for long-distance trade. We design a three-commodity production and exchange economy in which agents in three geographically separated villages must develop multilateral...