Abstract
We experimentally study causal effects of competitive experience in markets with a short and a long side on efficiency levels attained in a subsequent social dilemma. We find that market experience affects efficiency when traders previously competed in the same market on the same side. The effect is strong for market-loser pairs and also exists for market-winner pairs, albeit to a lesser extent. Cooperation efficiency is unaffected for pairs consisting of a market-winner and a market-loser. When traders did not interact on the same market before, efficiency of cooperation is higher for market-winner pairs, but only in the short run. (C) 2019 Elsevier B.V. All rights reserved.
| Original language | English |
|---|---|
| Article number | 103318 |
| Number of pages | 19 |
| Journal | European Economic Review |
| Volume | 121 |
| DOIs | |
| Publication status | Published - Jan 2020 |
JEL classifications
- a13 - Relation of Economics to Social Values
- c92 - Design of Experiments: Laboratory, Group Behavior
- d30 - Distribution: General
- d60 - Welfare Economics: General
Keywords
- Competitive market
- Social dilemma
- Experiment
- SOCIAL PREFERENCES
- DYNAMICS
- TIES
Datasets
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Replication data for: Market interaction and efficient cooperation
Brandts, J. (Creator) & Riedl, A. (Creator), Elsevier, 2020
DOI: 10.1016/j.euroecorev.2019.103318, https://doi.org/10.1016/j.euroecorev.2019.103318
Dataset/Software: Dataset