Y2K Bibliography of Experimental Economics and Social Science
Markets with Posted Prices

Charles A. Holt, cah2k@virginia.edu, suggestions and corrections welcome
(for online and personal use only)


Borck, Rainald, Dirk Engelmann, and Wieland Müller (1999) “Tax Liability Side Equivalence in an Experimental Posted Offer Market,” Humboldt University, Discussion Paper, presented at the Fall 1999 European Regional ESA Meeting. Keywords: experiments, markets, tax incidence. Abstract: This experiment is focused on the effect of tax incidence in a posted-offer market. A tax levied on sellers has essentially the same price effect as an equal tax levied on buyers, with prices being slightly above the competitive prediction in both treatments. Email Contact: engelmann@wiwi.hu-berlin.de

Capra, C. Monica, Rosario Gomez, Jacob K. Goeree, and Charles A. Holt (2000) “Predation, Asymmetric Information, and Strategic Behavior in the Classroom: An Experimental Approach to the Teaching of Industrial Organization,” International Journal of Industrial Organization, 18:1 (January), 205-225. Keywords: experiments, classroom games, markets, predatory pricing, posted offer markets, entry, multiple markets. Abstract: This paper describes a classroom predatory pricing game, and surveys a series of other classroom games motivated by industrial organization issues. Email Contact: jg2n@virginia.edu

Cason, Timothy N., and Arlington W. Williams (1990) “Competitive Equilibrium Convergence in a Posted-Offer Market with Extreme Earnings Inequities,” Journal of Economic Behavior and Organization, 14:3 (December), 331-352. Keywords: experiments, markets, posted-offer market, earnings inequities. Email Contact: cason@mgmt.purdue.edu

Cason, Timothy N., and Daniel Friedman (1998) “A Laboratory Study of Customer Markets,” University of California at Santa Cruz, Discussion Paper, presented at the Summer 1998 ESA Meeting. Keywords: experiments, markets, posted price auctions, switching costs, efficiency. Abstract: This experiment involves sellers with randomly fluctuating production costs and buyers who incur a cost of switching sellers. Sellers tend to post higher prices when switch costs are higher. Email Contact: cason@mgmt.purdue.edu

Cason, Timothy N., and Lata Gangadharan (1999) “Environmental Labeling and Incomplete Consumer Information in Laboratory Markets,” Purdue University, Discussion Paper, presented at the Summer 1999 ESA Meeting. Keywords: experiments, markets, externalities, environmental economics. Abstract: Producers in a laboratory posted offer market choose a level of environmental quality for the goods they sell. This quality is valued by consumers but cannot be observed by prior to purchase. The informational asymmetry results in inefficiently low levels of environmental quality that is only imperfectly corrected by reputations and signaling. Email Contact: cason@mgmt.purdue.edu

Cason, Timothy N., and Tridib Sharma (1999) “Durable Goods, Coasian Dynamics and Uncertainty: Theory and Experiments,” Purdue University, Discussion Paper, presented at the Summer 1999 ESA Meeting. Keywords: experiments, markets, durable goods, Coase conjecture, posted offer, private values, demand withholding. Abstract: Two buyers draw private values (high or low), and the single seller sets a price. Buyers decide whether or not to buy (at most one unit each). If fewer than two units are sold, the seller can set a new price, etc., until both units are sold or the round is terminated randomly. The equilibrium involves a declining (Coasian) price sequence, which is observed in the experiments. Perfect price discrimination is not observed. Email Contact: cason@mgmt.purdue.edu

Cason, Timothy N. (1999) “Price Signaling and `Cheap Talk' in Laboratory Posted Offer Markets,” in The Handbook of Experimental Economics Results, edited by C. Plott and V. Smith, Amsterdam: Elsevier Press, forthcoming. Keywords: experiments, markets, posted offer, price signaling, cheap talk. Email Contact: cason@mgmt.purdue.edu

Coursey, Donald L., and Vernon L. Smith (1983) “Price Controls in a Posted-Offer Market,” American Economic Review, 73(March), 218-221. Keywords: experiments, markets, posted-offer market, price controls. Email Contact: vls@econlab.arizona.edu

Davis, Douglas D., and Arlington W. Williams (1986) “The Effects of Rent Asymmetries in Posted Offer Markets,” Journal of Economic Behavior and Organization, 7:3 (September), 303-316. Keywords: experiments, markets, posted offer, rent asymmetries. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D.*, and Charles A. Holt (1990) “The Effects of Non-Binding Price Announcements in Posted-Offer Markets,” Economics Letters, 34:4 307-310. Keywords: experiments, markets, posted offer, cheap talk. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Arlington W. Williams (1990) “Market Power and the Informational Asymmetry of the Posted-Offer Trading Institution,” Economics Letters, 34:3 211-214. Keywords: experiments, markets, posted offer, market power, institutions. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Arlington W. Williams (1991) “The Hayek Hypothesis in Experimental Auctions: Institutional Effects and Market Power,” Economic Inquiry, 29:2 (April), 261-274. Keywords: experiments, markets, posted offer, double auctions, market power. Abstract: The effect of seller market power is to raise prices in laboratory posted offer markets. This effect is much less pronounced in double auctions. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1992) “Capacity Constraints, Market Power, and Mergers in Markets with Posted Prices,” Investigaciones Economicas, 2(supplement), 73-79. Keywords: experiments, markets, posted offer, market power. Abstract: This paper summarizes initial work on the effects of mergers that create market power in posted price markets. A merger can create market power by reducing rivals' capacity, and hence reducing their ability to increase market share when the merged firm raises prices above competitive levels. This market power results in higher prices, as predicted by a Nash equilibrium in mixed strategies. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., Glenn W. Harrison, and Arlington W. Williams (1993) “Convergence to Nonstationary Competitive Equilibria: An Experimental Analysis,” Journal of Economic Behavior and Organization, 22:3 (December), 305-326. Keywords: experiments, markets, double auctions, posted offer, demand shifts, price adjustment. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., Glenn W. Harrison, and Arlington W. Williams (1993) “The Effects of Nonstationarities on the Convergence to Competitive Equilibria,” Journal of Economic Behavior and Organization, 20(supplement), 1-22. Keywords: experiments, markets, posted offer, nonstationarities. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1994) “Market Power and Mergers in Markets with Posted Prices,” RAND Journal of Economics, 25:3 467-487. Keywords: experiments, markets, posted offer, market power, numbers effects, mixed strategies. Abstract: Posted prices converge to competitive levels in the baseline treatment, whereas prices rise dramatically when a concentration of production capacity creates market power. A reduction in the number of sellers that does not alter market power has a small upward effect on prices. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1994) “Conspiracies and Secret Discounts: Initial Laboratory Results,” in Actas de las IX Jornadas de Economia Industrial, Madrid, Spain: Fundacion Empresa Publica, 103-107. Keywords: experiments, markets, posted offer, collusion, secret discounts. Abstract This paper reports initial results for posted offer auctions in which sellers collude while buyers are out of the room. Seller collusion is successful in posted offer markets, but collusive prices fall to near-competitive levels when buyers can request secret discounts that are not observed by other sellers. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1994) “The Effects of Discounting Opportunities in Laboratory Posted-Offer Markets,” Economics Letters, 44:3 249-253. Keywords: experiments, markets, posted offer, secret discounts. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1995) “An Examination of the Diamond Paradox: Initial Laboratory Results,” Actas de las X Jornadas de Economia Industrial, 67-70. Keywords: experiments, markets, posted offer, search, Diamond paradox. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1996) “List Prices and Discounts: The Interrelationship Between Consumer Shopping Patterns and Profitable Marketing Strategies,” Psychology and Marketing, 13(July), 341-363. Keywords: experiments, markets, posted offer, discounts, search. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1996) “Price Rigidities and Institutional Variations in Markets with Posted Prices,” Economic Theory, 9:1 63-80. Keywords: experiments, markets, posted offer, double auctions, discounts, demand shifts, market institutions. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1996) “Consumer Search Costs and Market Performance,” Economic Inquiry, 34(January), 1-29*. Keywords: experiments, markets, posted auction, search, search costs, Diamond paradox. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1996) “Markets with Posted Prices: Recent Results from the Laboratory,” Investigaciones Economicas, 20:3 291-320. Keywords: experiments, markets, posted offer, survey, search, collusion, discounts, demand shifts, market power. Abstract: This paper surveys the results of laboratory posted price experiments in with one or more modifications: market power, secret discounts, collusion, demand shocks, and advance production. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1997) “Price Rigidities and Institutional Variations in Markets with Posted Prices,” Economic Theory, 963-80. Keywords: experiments, markets, posted offer, demand shifts, discounts, clearance sales. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1998) “Conspiracies and Secret Price Discounts,” Economic Journal, 108(May), 1-21*. Keywords: experiments, markets, posted offer, collusion, discounts, trade associations. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D. (1998) “The Effects of Collusion in Laboratory Experiments,” in Handbook of Experimental Economics Results, edited by C.R. Plott and V.L. Smith, New York: Elsevier Press, forthcoming. Keywords: experiments, markets, posted offer, double auction, survey, collusion, discounts. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and K Ramagopal (1998) “Demand Shocks, Advance Production and Market Power: Some Lessons about Markets from the Laboratory,” Managerial Decision and Economics, 19:4-5 (June-August), 205-223. Keywords: experiments, markets, posted offer, survey, demand shocks, advance production, market power. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1999) “The Exercise of Market Power in Laboratory Experiments,” in Handbook of Experimental Economics Results, edited by C. R. Plott and V. L. Smith, New York: Elsevier Press, forthcoming. Keywords: experiments, markets, survey, posted offer, market power. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Charles A. Holt (1999) “The Effects of Collusion in Laboratory Experiments,” in Handbook of
Experimental Economics Results, edited by C. R. Plott and V. L. Smith, New York: Elsevier Press, forthcoming. Keywords: experiments, markets, survey, posted offer, collusion, discounts. Email Contact: ddavis@busnet.bus.vcu.edu

Davis, Douglas D., and Bart J. Wilson (1999) “Mixed Strategy Nash Equilibrium Predictions as a Means of Organizing Behavior in Posted-Offer Market Experiments,” in Handbook of Experimental Economics Results, edited by C. R. Plott and V. L. Smith, New York: Elsevier Press, forthcoming. Keywords: experiments, markets, survey, posted offer, market power. Email Contact: ddavis@busnet.bus.vcu.edu

DeJong, Douglas V., Robert Forsythe, and Russell Lundholm (1985) “Ripoffs, Lemons, and Reputation Formation in Agency Relationships: A Laboratory Market Study,” Journal of Finance, 40(July), 809-823. Keywords: experiments, information, markets, posted offer, quality, asymmetric information, lemons markets. Email Contact: dejong@blue.weeg.uiowa.edu

Franciosi, Robert (1995) “Fairness: Effect on Temporary and Equilibrium Prices in Posted-Offer Markets,” Economic Journal, 105:431 (July), 938-950. Keywords: experiments, markets, posted offer, fairness.

Grether, David M., and Charles R. Plott (1984) “The Effects of Market Practices in Oligopolistic Markets: An Experimental Examination of the Ethyl Case,” Economic Inquiry, 22(October), 479-507. Keywords: experiments, markets, posted prices, contracts, most-favored-nation, meet-or-release, advance notice of price increases, delivered pricing. Email Contact: dmg@doxie.caltech.edu

Hannman, Lynn, John H. Kagel, and Donald V. Moser (1999) “Gift Exchange in Experimental Labor Markets: Impact of Subject Participation, Productivity Differences and Posted Effort on Behavior,” University of Pittsburgh, Discussion Paper, presented at the Spring 1999 Public Choice Meeting. Keywords: experiments, markets, labor markets, reciprocity.

Hoffman, Elizabeth, and Charles R. Plott (1981) “The Effect of Intertemporal Speculation on the Outcomes in Seller Posted Offer Auction Markets,” Quarterly Journal of Economics, 96:2 (May), 223-241. Keywords: experiments, markets, posted offer, multiple markets, speculation. Email Contact: ehoffman@uic.edu

Holt, Charles A., and Roger Sherman (1990) “Advertising and Product Quality in Posted-Offer Experiments,” Economic Inquiry, 28:3 (January), 39-56. Keywords: experiments, markets, asymmetric information, lemons markets, quality, advertising. Abstract: The experimental markets with asymmetric information allow an analysis of professional association rules that prohibit price and or quality advertising. Email Contact: holt@virginia.edu

Holt, Charles A., and Fernando Solis-Soberon (1992) “The Calculation of Equilibrium Mixed Strategies in Posted-Offer Auctions,” in Research in Experimental Economics, Vol. 5, edited by R. M. Isaac, Greenwich, Conn.: JAI Press, 189-229. Keywords: experiments, game theory, mixed strategies, posted offer auctions, markets, risk aversion, capacity constraints, cost asymmetries. Abstract The "how-to" for calculating equilibrium mixed strategies in the complicated step-function and capacity constrained environments often used in laboratory experiments. The paper discusses ways to deal with multiple steps, cost and capacity asymmetries, risk aversion, etc. Email Contact: holt@virginia.edu

Holt, Charles A. (1995) “Industrial Organization: A Survey of Laboratory Results,” in Handbook of Experimental Economics, edited by J. Kagel and A. Roth, Princeton, N.J.: Princeton University Press, 349-443. Keywords: experiments, markets, industrial organization, Cournot, double auction, posted offer auction, quality, market power, asymmetric information, survey. Abstract This paper surveys the large literature on industrial organization experiments. Email Contact: holt@virginia.edu

Hong, James T., and Charles R. Plott (1982) “Rate Filing Policies for Inland Water Transportation: An Experimental Approach,” The Bell Journal of Economics, 13(Spring), 1-19. Keywords: experiments, markets, posted prices, regulation, efficiency, institutions.

Isaac, R. Mark, Valerie Ramey, and Arlington W. Williams (1984) “The Effects of Market Organization on Conspiracies in Restraint of Trade,” Journal of Economic Behavior and Organization, 5191-222. Keywords: experiments, markets, double auction, posted offer, conspiracy, institutions. Email Contact: misaac@bpa.arizona.edu

Ketcham, Jon, Vernon L. Smith, and Arlington W. Williams (1984) “A Comparison of Posted-Offer and Double-Auction Pricing Institutions,” Review of Economic Studies, 51:4 (October), 595-614. Keywords: experiments, markets, posted offer, double auction, institutions, efficiency.

Kruse, Jamie Brown (1993) “Nash Equilibrium and Buyer Rationing Rules: Experimental Evidence,” Economic Inquiry, 31:4 (October), 631-646. Keywords: experiments, markets, posted prices, rationing. Email Contact: jamie.kruse@ttu.edu

Kruse, Jamie Brown, Steven Rassenti, Stan Reynolds, and Vernon Smith (1994) “Bertrand-Edgeworth Competition in Experimental Markets,” Econometrica, 62:2 (March), 343-372. Keywords: experiments, markets, posted prices, Edgeworth cycles, Bertrand. Email Contact: jamie.kruse@ttu.edu

Kujal, Praveen (1992) “Asymmetric Surplus Distribution and Price Convergence Path in Posted-Offer Markets,” Economic Letters, 39:1 (May), 33-36. Keywords: experiments, markets, posted offer, asymmetric surplus, dynamics, price adjustment path, direction of convergence. Email Contact: kujal@elrond.uc3m.es

Mestelman, Stuart, Deborah Welland, and Douglas Welland (1987) “Advance Production in Posted Offer Markets,” Journal of Economic Behavior and Organization, 8:2 (June), 249-264. Keywords: experiments, markets, posted offer, advance production. Email Contact: mestelma@mcmaster.ca

Mestelman, Stuart, and Douglas Welland (1991) “The Effects of Rent Asymmetries in Markets Characterized by Advance Production: A Comparison of Trading Institutions,” Journal of Economic Behavior and Organization, 15:3 (May), 387-405. Keywords: experiments, markets, posted offer, double auction, advance production, rent asymmetries. Email Contact: mestelma@mcmaster.ca

Parikh, David (1998) “Implications of a Posted-Offer-With-Negotiations Institution on Asset Markets: Efficiency, Market Clearing, and Strategic Behavior,” Discussion Paper, presented at the Fall 1998 ESA Meeting. Keywords: experiments, markets, asset markets, posted-offer, negotiations. Email Contact: dparikh@scf.usc.edu

Plott, Charles R. (1986) “Laboratory Experiments in Economics: The Implications of Posted-Price Institution,” Science, 232(May 9), 732-738. Keywords: experiments, markets, posted prices, survey. Email Contact: cplott@hss.caltech.edu

Plott, Charles R. (1987) “Dimensions of Parallelism: Some Policy Applications of Experimental Methods,” in Laboratory Experimentation in Economics, Six Points of View, edited by A. E.. Roth, Cambridge: Cambridge University Press, 193-219. Keywords: experiments, methodology, policy analysis, Ethyl case, landing slots, voting, agendas, parallelism, posted prices, trading institutions,. Email Contact: cplott@hss.caltech.edu

Plott, Charles R. (1987) “Laboratory Experiments in Economics: The Implications of the Posted-Price Institutions,” Science, 232(May 9), 732-738. Keywords: experiments, markets, survey, posted-price markets. Email Contact: cplott@hss.caltech.edu

Ruffle, Bradley (1998) “Do Buyers Always Act as Passive Price-Takers? Demand Withholding in Experimental Posted-Offer Markets,” Gen-Gurion University, Discussion Paper. Keywords: experiments, markets, posted offer, buyer behavior, demand withholding. Email Contact: bradley@bgumail.bgu.ac.il

Ruffle, Bradley (1998) “Buyer Market Power and Monopoly Powerless?,” Gen-Gurion University, Discussion Paper. Keywords: experiments, markets, posted offer, buyer behavior, demand withholding. Email Contact: bradley@bgumail.bgu.ac.il

Wilson, Bart J. (1998) “What Collusion? Unilateral Market Power as a Catalyst for Countercyclical Markups,” Experimental Economics, 1:2 133-145. Keywords: experiments, markets, market power, posted offer auctions, markups, oligopoly. Email Contact: bwilson@econlab.arizona.edu