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Purchase Benefits
What is included with this book?
Basic Concepts: Decisions, Game Theory, and Market Equilibrium | p. 1 |
Introduction | p. 3 |
Origins | p. 3 |
Overview | p. 5 |
Methodology | p. 8 |
A Brief History of Experimental Economics | p. 16 |
Questions | p. 18 |
A Pit Market | p. 21 |
A Simple Example | p. 21 |
A Classroom Experiment | p. 22 |
Chamberlin's Results and Vernon Smith's Reaction | p. 27 |
Extensions | p. 31 |
Questions | p. 32 |
Some Simple Games: Competition, Coordination, and Guessing | p. 35 |
Game Theory and the Prisoner's Dilemma | p. 35 |
A Prisoner's Dilemma Experiment | p. 37 |
A Coordination Game | p. 40 |
A Guessing Game | p. 42 |
Extensions | p. 44 |
Questions | p. 45 |
Risk and Decision Making | p. 47 |
Who Wants to Be a Millionaire? | p. 47 |
A Simple Lottery-Choice Experiment | p. 50 |
Payoff Scale, Order, and Demographics Effects | p. 54 |
Extensions | p. 58 |
Questions | p. 58 |
Randomized Strategies | p. 59 |
Symmetric Matching Pennies Games | p. 59 |
Battle of the Sexes | p. 63 |
Extensions | p. 67 |
Questions | p. 67 |
Market Experiments | p. 69 |
Monopoly and Cournot Markets | p. 71 |
Monopoly | p. 71 |
Cournot Duopoly | p. 75 |
Cournot Oligopoly | p. 77 |
Extensions | p. 80 |
Optional Quick Calculus Review | p. 80 |
Questions | p. 81 |
Vertical Market Relationships | p. 83 |
Double Marginalization | p. 83 |
The Newsvendor Problem | p. 87 |
The Bullwhip Effect | p. 90 |
Extensions | p. 92 |
Questions | p. 93 |
Market Institutions and Power | p. 95 |
Introduction | p. 95 |
The Exercise of Seller Market Power without Explicit Collusion | p. 99 |
Edgeworth Cycles and Random Prices | p. 102 |
The Effects of Market Power | p. 103 |
Extensions | p. 107 |
Calculation of a Mixed-Strategy Equilibrium in Prices | p. 107 |
Questions | p. 109 |
Collusion and Price Competition | p. 111 |
Collusion in Posted-Offer Markets: "This Is Economics" | p. 111 |
Collusion with Secret Discounts | p. 114 |
Extensions: Cheap Talk, Mutual Forbearance, and the "V Word" | p. 117 |
Questions | p. 120 |
Market Failure Due to Unraveling: Lemons and Matching Markets | p. 123 |
Endogenous Product Quality | p. 123 |
Clearinghouse Mechanisms and Unraveling in Labor Markets | p. 127 |
Extensions: Baseball, Dorm Rooms, School Choice, Deep Space, Sorority Rush,...but Marriage? | p. 131 |
Questions | p. 131 |
Asset Markets and Price Bubbles | p. 133 |
Bubbles and Crashes | p. 133 |
A Digression on Present Value | p. 137 |
The Limit Order Market Experiment | p. 138 |
Other Research on the Call Market Institution | p. 141 |
Questions | p. 143 |
Bargaining and Behavioral Labor Economics | p. 145 |
Ultimatum Bargaining | p. 147 |
Strategic Advantage and Ultimatums | p. 147 |
Bargaining in the Bush | p. 148 |
Bargaining in the Lab | p. 151 |
Multi-Stage Bargaining | p. 153 |
Extensions: "I Will Be Spending Years Trying to Figure Out What This All Meant" | p. 156 |
Questions | p. 157 |
Trust, Reciprocity, and Principal-Agent Games | p. 159 |
The Trust Game | p. 159 |
A Labor Market Reciprocity Game | p. 162 |
Extensions: Field Experiments | p. 164 |
Questions | p. 165 |
Public Choice | p. 167 |
Voluntary Contributions | p. 169 |
Social Norms and Public Goods | p. 169 |
"Economists Free-Ride, Does Anyone Else?" | p. 171 |
Single-Round Experiments | p. 172 |
Multi-Round Experiments | p. 176 |
Extensions | p. 178 |
Questions | p. 180 |
The Volunteer's Dilemma | p. 183 |
Sometimes It Only Takes One Hero | p. 183 |
Initial Experimental Evidence | p. 184 |
The Mixed-Strategy Equilibrium | p. 186 |
An Experiment on Group Size Effects | p. 189 |
Extensions | p. 191 |
Questions | p. 191 |
Externalities, Congestion, and Common Pool Resources | p. 193 |
Water | p. 194 |
Ducks and Traffic | p. 195 |
Fish | p. 200 |
Extensions | p. 202 |
Questions | p. 203 |
Rent Seeking | p. 205 |
Government with "a Smokestack on Its Back" | p. 205 |
Rent Seeking in the Classroom Laboratory | p. 207 |
The Nash Equilibrium | p. 208 |
Comparative Statics for Changes in Cost and the Number of Competitors | p. 209 |
Extensions | p. 210 |
Questions | p. 212 |
Voting and Politics Experiments | p. 215 |
The Median Voter Theorem | p. 215 |
Experimental Tests of Spatial Voting Models | p. 217 |
Fairness and Deviations from Core Outcomes | p. 220 |
Legislative Bargaining | p. 221 |
Agendas and Strategic Voting | p. 222 |
Polls, Runoffs, and Other Coordinating Devices | p. 224 |
Participation Games | p. 225 |
Field Experiments | p. 227 |
Extensions | p. 228 |
Questions | p. 229 |
Auctions | p. 231 |
Private Value Auctions | p. 233 |
Introduction | p. 233 |
Auctions: Up, Down, and the "Little Magical Elf" | p. 234 |
Bidding against a Uniform Distribution | p. 237 |
Bidding Behavior in a Two-Person, First-Price Auction | p. 240 |
Extensions | p. 242 |
Risk Aversion | p. 244 |
Questions | p. 246 |
The Takeover Game | p. 247 |
Wall Street (the Film) | p. 247 |
A Takeover Game Experiment | p. 248 |
Quality Unraveling | p. 250 |
Extensions: The Loser's Curse | p. 252 |
Questions | p. 252 |
Common-Value Auctions and the Winner's Curse | p. 255 |
"I Won the Auction but I Wish I Hadn't" | p. 255 |
The Nash Equilibrium | p. 258 |
The Winner's Curse | p. 261 |
Extensions | p. 262 |
Questions | p. 263 |
Multi-Unit and Combinatorial Auctions | p. 265 |
Dry 2K | p. 265 |
FCC Bandwidth Auctions and Package Bidding Alternatives | p. 272 |
Experimental Tests of Package Bidding Alternatives | p. 276 |
Extensions | p. 278 |
Questions | p. 279 |
Behavioral Game Theory: Treasures and Intuitive Contradictions | p. 281 |
Multi-Stage Games | p. 285 |
Extensive Forms and Strategies | p. 285 |
Two-Stage Trust Games | p. 288 |
The Centipede Game | p. 291 |
Extensions | p. 292 |
Questions | p. 293 |
Generalized Matching Pennies | p. 295 |
The Case of Balanced Payoffs | p. 295 |
Noisy Best Responses | p. 296 |
The Effects of Payoff Imbalances | p. 299 |
Probabilistic Choice | p. 302 |
Extensions | p. 304 |
Questions | p. 305 |
The Traveler's Dilemma | p. 307 |
A Vacation with an Unhappy Ending? | p. 307 |
Data | p. 309 |
Learning and Experience | p. 310 |
Iterated Rationality and Quantal Response Equilibrium | p. 312 |
Extensions | p. 316 |
Bounded Rationality in the Traveler's Dilemma-A Spreadsheet-Based Analysis | p. 318 |
Questions | p. 323 |
Coordination Games | p. 325 |
"The Minimum Effort Game? That's One I Can Play!" | p. 325 |
Nash Equilibria, Numbers Effects, and Experimental Evidence | p. 328 |
Effort-Cost Effects | p. 329 |
Equilibrium with Noisy Behavior | p. 331 |
Extensions | p. 333 |
An Analysis of Noisy Behavior in the Coordination Game | p. 334 |
Questions | p. 337 |
Individual Decision Experiments | p. 339 |
Probability Matching | p. 341 |
Being Treated Like a Rat | p. 341 |
Are Rats Really More Rational Than Humans? | p. 342 |
Siegel and Goldstein's Experiments | p. 343 |
A Simple Model of Belief Learning | p. 345 |
Reinforcement Learning | p. 346 |
Extensions | p. 347 |
Questions | p. 348 |
Lottery Choice Anomalies | p. 351 |
Introduction | p. 351 |
The Allais Paradox | p. 352 |
Prospect Theory: Probability Misperception | p. 354 |
Prospect Theory: Gains, Losses, and "Reflection Effects" | p. 356 |
Extensions | p. 359 |
Questions | p. 360 |
ISO (in Search of...) | p. 361 |
Introduction | p. 361 |
Search from a Uniform Distribution | p. 362 |
Experimental Data | p. 363 |
Optimal Search | p. 364 |
Extensions | p. 366 |
Questions | p. 367 |
Information, Learning, and Signaling | p. 369 |
Bayes' Rule | p. 371 |
Introduction | p. 371 |
A Simple Example and a Counting Heuristic | p. 373 |
Relating the Counting Heuristic to Bayes' Rule | p. 376 |
Experimental Results | p. 378 |
Bayes' Rule with Elicited Probabilities | p. 379 |
A Follow-Up Experiment with a Rare Event | p. 382 |
Extensions | p. 383 |
Truthful Elicitation | p. 384 |
Questions | p. 385 |
Information Cascades | p. 389 |
"To Do Exactly as Your Neighbors Do Is the Only Sensible Rule" | p. 389 |
A Model of Rational Learning from Others' Decisions | p. 390 |
Experimental Evidence | p. 392 |
Extensions | p. 395 |
Questions | p. 396 |
Statistical Discrimination | p. 397 |
"Brown-Eyed People Are More Civilized" | p. 397 |
Being Purple or Green | p. 399 |
Data on Statistical Discrimination | p. 401 |
"Are Emily and Greg More Employable than Lakisha and Jamal?" | p. 405 |
Extensions | p. 406 |
Derivation of the Discriminatory Equilibrium | p. 407 |
Questions | p. 408 |
Signaling Games | p. 409 |
Real Men Don't Eat Quiche | p. 409 |
Separating Equilibria | p. 410 |
Pooling | p. 412 |
Unintuitive Beliefs and Reverse Type Dependence | p. 413 |
"Stripped Down Poker" | p. 416 |
Extensions: "Too Cool for School" | p. 419 |
Questions | p. 420 |
Prediction Markets | p. 423 |
The Rationale for Prediction Markets | p. 423 |
The Success of Political Event Markets | p. 426 |
Information Aggregation and "Common Value Trading" | p. 428 |
Extensions | p. 431 |
Questions | p. 431 |
References | p. 433 |
Index | p. 451 |
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The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.
The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.