References

Alesina, A., & La Ferrara, E. (2002). Who trusts others Journal of Public Economics, 85(2), 207-234. Anderson, L. R., Mellor, J. M., & Milyo, J. (2004a). Social Capital and Contributions in a Public Goods Experiment. American Economic Review Papers and Proceedings, 94(2), 373-376. Anderson, L. R., Mellor, J. M., & Milyo, J., (2004b). Inequality, group cohesion and public good provision. Working Paper, Department of Economics, The College of William and Mary. Berg, J., Dickhaut, J.,...

Info

One of the subjects in experiment 11 exhibited an exceptional level of price competition. As a result, the average margins of the market were lower than similar experiments. Since we observed this behavior only in one of the five experiments with the same treatment, the result of this experiment was less emphasized in formulating business recommendations. Summary statistics suggest that the experiments were calibrated reasonably well with the markets being studied....

Experiment

Participants in this experiment were 74 MBA students who were enrolled in one section of a required first-year course. Each subject received a packet containing a set of four questions, counterbalanced for order.2 The instructor asked the participants to read through the packet and to record their responses in the correct spaces. Subjects were told that one pair of them would be chosen at random in the next class to play the gains game for real, in accordance with the answers they recorded that...

Discussions

Design Philosophy of Business Experiments There are obviously many very broad classes of business questions that experimental methodology can provide answers. There is not enough room to cover them all. Instead, this chapter focuses on the low hanging fruit areas that experimental economics has contributed immediately and significantly. Contracting between manufacturer and retailers is one such area. Manufacturers operating in the contemporary market for technology products face a daunting...