We examine the stability of equilibrium in sunspot-driven real business cycle (RBC) models under adaptive learning. We show that the general reduced form of this class of models can admit rational expectations equilibria that are both indeterminate and stable under adaptive learning....

We examine whether a simple agent--based model can generate asset price bubbles and crashes of the type observed in a series of laboratory asset market experiments beginning with the work of Smith, Suchanek and Williams (1988). We follow the methodology of Gode and Sunder (1993, 1997) and...

We explore whether natural human competitiveness can be exploited to stimulate charitable giving in a controlled laboratory experiment involving three different treatments of a sequential ``dictator game.'' Without disclosing the actual amounts given and kept, in each period players are publicly...

We report results from an experiment that examines play in an indefinitely repeated, two-player Prisoner's Dilemma game. Each experimental session involves N subjects and a sequence of indefinitely repeated games. The main treatment consists of whether agents are matched in fixed pairings or...

We propose to experimentally study decentralized organization learning. Our objective is to understand how learning members of an organization cope with the confounding effects of the simultaneous learning of other agents. An important distinction of our approach is that we test predictions from...

We show that extrinsic or nonfundamental uncertainty influences markets in a controlled environment. This work provides the first direct evidence of sunspot equilibria. These equilibria require a common understanding of the semantics of the sunspot variable, and they appear to be sensitive to...

Many growth models assume that aggregate output is generated by a Cobb-Douglas production function. In this article we question the empirical relevance of this specification. We use a panel of 82 countries over a 28-year period to estimate a general constant-elasticity-of-substitution (CES)...

Since Griliches (1969), researchers have been intrigued by the idea that physical capital and skilled labor are more complementary than physical capital and unskilled labor. In this paper we consider the cross-country evidence for capital-skill complementarity using a time-series cross-section...