Search results for "Experimental Economics"
showing 10 items of 31 documents
Vertical Separation v. Independent Downstream Entry in the Spanish Electricity Network: An Experimental Approach
2007
We present experimental results from a series of sessions organized using the Power Market simulator; a software designed to realistically replicate the Spanish Electricity Market. In the experiments reported here we compare the status quo to two alternative treatments which represent alternative market structures. In one of them, labeled as vertical separation, we assume that power generating firms and electricity distributors-endsuppliers belong to separate business groups. In the second, we study the effect of entry by independent end-suppliers. Both alternative scenarios dominate the status quo in terms of market efficiency, whereas the latter of them dominates the former.
¿Cómo cooperan los estudiantes de primero de ADE? Trabajo en equipo: diseño basado en Economía Experimental
2013
En este trabajo presentamos el diseño y los resultados de un experimento económico realizado por estudiantes de primero del grado de administración y dirección de empresas en el transcurso de una clase práctica de la asignatura transversal de incorporación a los estudios universitarios. Los estudiantes tomaron sus decisiones en un marco donde coexisten los conflictos individuales con los colectivos. El efecto del grupo les ilustró el efecto de la coordinación y del trabajo en equipo. El principal objetivo de esta actividad es desarrollar y evaluar la competencia de trabajo en equipo, así como la responsabilidad social, capacidad reflexiva y actitud crítica de los estudiantes.
Wage Bargaining Centralization And Macroeconomic Performance: An Experimental Approach
2001
This paper experimentally analyzes the effect of wage bargaining centralization (WBC) on macroeconomic performance. Our theoretical benchmark comes from that developed by Cukierman and Lippi (1999) to investigate the joint effects of monetary policy and labor market institutions on unemployment and inflation. We focus on the implications of two well known effects related to the degree of WBC: the competitive effect and the strategic effect. To do so we established a simple wage setting mechanism based on the existence of assorted levels of WBC measured by the number of unions in the labor market. In the three control treatments, unions' welfare and monetary rewards depend only on unemployme…
Aprender finanzas conductuales experimentando
2021
[EN] In an ever-changing economic and business environment, it is especially interesting that students learn, and experiment with their own decision-making, about behavioral finance. This experience will provide them with a better understanding of the economic agents’ behavior in different real- life situations (auctions, pricing, negotiations, investing and financing decisions). By experimenting, they acquire solid knowledge about biases, rational and irrational behaviors, and motivations that govern economic life. Controlled economic experiments in the classroom, a gamification learning methodology, allow students to better understand complex economic-financial concepts such as the herdin…
eWOM in reward-based crowdfunding platforms: a behavioral approach
2020
[EN] Electronic word of mouth (eWOM) plays a crucial role in influencing purchasing decisions of consumers in situations governed by asymmetric information. In this context, investors in reward-based crowdfunding platforms might modify their purchasing intentions according to recommendations of peers and/or experts. The goal of this paper is to analyze the power of eWOM to shape consumers’ purchasing decisions. We do so by conducting an experiment through Amazon Mechanical Turk (AMT). This online experimental tool allows for an instant access to a large and culturally diverse subject pool, facilitating behavioral research requiring large amounts of subjects. By recreating a reward-based cro…
Carry a big stick, or no stick at all: Punishment and endowment heterogeneity in the trust game
2016
AbstractWe investigate the effect of costly punishment in a trust game with endowment heterogeneity. Our findings indicate that the difference between the investor and the allocator’s initial endowments determines the effect of punishment on trust and trustworthiness. Punishment fosters trust only when the investor is wealthier than the allocator. Otherwise, punishment fails to promote trusting behavior. As for trustworthiness, the effect is just the opposite. The higher the difference between the investor and the allocator’s initial endowments, the less willing allocators are to pay back. We discuss the consistency of our findings with social preference models (like inequality aversion, re…
On the evolution of monopoly pricing in Internet-assisted search markets
2014
This study examines the evolution of prices in markets with Internet price-comparison search engines. The empirical study analyzes laboratory data of prices available to informed consumers, for two industry sizes and two conditions on the sample (complete and incomplete). Distributions are typically bimodal. One of the two modes of distribution, corresponding to monopoly pricing, tends to attract such pricing strategies increasingly over time. The second one, corresponding to interior pricing, follows a decreasing trend. Monopoly pricing can serve as a means of insurance against more competitive (but riskier) behavior. In fact, experimental subjects who initially earn low profits due to int…
The attraction effect in mid-involvement categories: An experimental economics approach
2016
Abstract Contexts, the set of alternatives under consideration, usually influence consumer choice. One of the context effects, namely the attraction effect , spawns considerable conceptual and empirical research, consistent with the aforementioned influence in decision-making. Very recently, some authors have questioned the practical relevance and applicability of the attraction effect. As part of this debate, some authors show that most of the existent research includes important background factors at levels that do not correspond to business reality. In light of the above, this article applies the methodology of experimental economics to the analysis of the attraction effect. The methodol…
Gender, self-confidence, sports, and preferences for competition
2016
In the last years, research in economics has shown a gender gap in the willingness to compete with women shying away from competition more than men do. This gender difference in preferences towards competition has been considered a critical factor in explaining the small percentage of women found in top-level positions in business, science, or politics. Therefore, in order to improve women job prospects, research and policy interventions try to offer incentives for women to increase competitive behavior. However, other recent studies specifically point at men¿s competitive behavior as the responsible for some of the financial markets malfunctions, suggesting that an influx of talented women…
Risk aversion in prediction markets: A framed-field experiment
2016
International audience; To make better decisions today, companies and other economic agents are interested in getting accurate predictions of future events. Prediction markets can, at least potentially, give those accurate forecasts for the probability of the event by aggregating information from traders. However, formal studies highlight that the risk attitudes of market participants may bias the market equilibrium prices, and consequently make the prediction unreliable. This research examines the effect of participants' risk attitudes on prediction market prices, through a framed field experiment on the two semifinals at the 2015 NCAA Men's Division Basketball Tournament. The results of t…