Extracting valuable data from classroom trading pits

How well does competitive theory explain the outcome in experimental markets. The authors examined the results of a large number of classroom trading experiments that used a pit-trading design found in Experiments with Economic Principles, an introductory economics textbook by Bergstrom and Miller....

Full description

Saved in:
Bibliographic Details
Published in:The Journal of economic education 2005-07, Vol.36 (3), p.220-235
Main Authors: Bergstrom, Theodore C, Kwok, Eugene
Format: Article
Language:English
Subjects:
Active Learning
Average prices
Class Activities
classroom experiments
Classrooms
Competition
competitive equilibrium
Cost Indexes
Costs
Demand curves
Demonstrations (Educational)
Didaktik
Economic costs
Economic Research
Economic value
Economics
Economics Education
Educational Methods
Educational Strategies
Equilibrium
Equilibrium prices
Experiment
Experimental economics
Experiments
Laboratories
Marketing
Microeconomics
pit trading
Predictor Variables
Prices
profit splitting
Profitability theory
Profits
Purchasing
Securities trading
Students
Studies
Studium
Suppliers
Supply
Supply & demand
Supply and Demand
Teaching methods
Textbooks
Trade
Wettbewerb
Wirtschaftswissenschaft
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:How well does competitive theory explain the outcome in experimental markets. The authors examined the results of a large number of classroom trading experiments that used a pit-trading design found in Experiments with Economic Principles, an introductory economics textbook by Bergstrom and Miller. They compared experimental outcomes with predictions of competitive-equilibrium theory and with those of a simple profit-splitting theory. Neither theory was entirely successful in explaining the data, although in the first rounds of trading there was significant profit splitting and, as traders became more experienced, outcomes were closer to those predicted by competitive theory.
ISSN:0022-0485
2152-4068
DOI:10.3200/JECE.36.3.220-235