Experimental Markets with Frictions

18 Pages Posted: 4 Jun 2013

See all articles by Gabriele Camera

Gabriele Camera

Chapman University - Economic Science Institute; University of Bologna - Dept. of Economics

Marco Casari

University of Bologna - Department of Economics

Maria Bigoni

University of Bologna - Department of Economics; IZA Institute of Labor Economics

Date Written: July 2013

Abstract

Decentralized and impersonal exchange is fundamental to contemporary economies, where many interactions take place among individuals with low levels of information about their counterpart. We review the experimental literature about markets with frictions, where strangers interact in pairs formed at random in economies of indefinite duration. We focus on the impact of communication on the efficiency of the outcome and report results of a new experiment.

Keywords: Coordination, Cheap‐talk, Deception, Indefinitely repeated game, Social norms

Suggested Citation

Camera, Gabriele and Casari, Marco and Bigoni, Maria, Experimental Markets with Frictions (July 2013). Journal of Economic Surveys, Vol. 27, Issue 3, pp. 536-553, 2013. Available at SSRN: https://ssrn.com/abstract=2273994 or http://dx.doi.org/10.1111/joes.12018

Gabriele Camera (Contact Author)

Chapman University - Economic Science Institute ( email )

Orange, CA 92866
United States

HOME PAGE: http://www1.chapman.edu/~camera/

University of Bologna - Dept. of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Marco Casari

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Maria Bigoni

University of Bologna - Department of Economics ( email )

Piazza Scaravilli 2
Bologna, Bologna 40126
Italy
+390512098134 (Phone)

HOME PAGE: http://https://www.unibo.it/sitoweb/maria.bigoni/en

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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