A Survey of the Hold-Up Problem in the Experimental Economics Literature

2018 ◽  
Author(s):  
Yadi Yang
Keyword(s):  
Experimental Economics ◽  
Economics Literature

Convertible local currency and trust: ‘It’s Not You, It’s Me’ – A field experiment in the French Basque Country

2020 ◽  
Vol 35 (2) ◽  
pp. 105-120
Author(s):  
Hayyan Alia ◽  
Eli Spiegelman
Keyword(s):  
Field Experiment ◽  
Experimental Economics ◽  
Strong Evidence ◽  
Basque Country ◽  
Trust Game ◽  
Local Currency ◽  
Economics Literature ◽  
Community Currencies ◽  
Weak Evidence ◽  
Community Currency

We present a field experiment investigating the mechanism by which community currencies enhance trust. Our question is the following: do I trust more when using a community currency because I am a trusting-type person or because I think that you are trustworthy? We call the former preference-based trust; while the latter is belief-based trust. We apply a modification of the standard trust game from the experimental economics literature to disentangle these mechanisms. Player A has to choose whether or not to trust player B, and player B can either reciprocate that trust or not. Our innovation is in experimentally separating the currency in which the game is played ( effective currency), from the currency preferred by the participant ( preferred currency). If the mechanism is preference-based, then preferred currency will determine trust more than effective; if it is belief-based, then the effective currency will be determinant. We find strong evidence of the preference-based mechanism of community currencies on trust, and only weak evidence of the belief-based mechanism.

EXTERNAL VALIDITY AND LIBRARIES OF PHENOMENA: A CRITIQUE OF GUALA'S METHODOLOGY OF EXPERIMENTAL ECONOMICS

2011 ◽  
Vol 27 (3) ◽  
pp. 247-271 ◽  
Author(s):  
Martin K. Jones
Keyword(s):  
Experimental Economics ◽  
External Validity ◽  
Economics Literature ◽  
Radical Ideas

Francesco Guala has developed some novel and radical ideas on the problem of external validity, a topic that has not received much attention in the experimental economics literature. In this paper I argue that his views on external validity are not justified and the conclusions which he draws from these views, if widely adopted, could substantially undermine the experimental economics enterprise. In rejecting the justification of these views, the paper reaffirms the importance of experiments in economics.

An ‘Inexact’ Philosophy of Economics?

1997 ◽  
Vol 13 (1) ◽  
pp. 25-37 ◽  
Author(s):  
Roger E. Backhouse
Keyword(s):  
Philosophy Of Science ◽  
Experimental Economics ◽  
Framing Effect ◽  
Economic Methodology ◽  
Systematic Account ◽  
Philosophy Of Economics ◽  
Economics Literature ◽  
Critical Commentary ◽  
The Subject ◽  
Definition Of

The Inexact and Separate Science of Economics (ISSE) (Hausman, 1992) represents the most ambitious attempt to provide a systematic account of economic methodology since the first edition of Blaug's The Methodology of Economics (1980). As such, it has been the subject of extensive critical commentary (for example, Blaug, 1992b; Backhouse, 1995; Miller, 1996; Hahn, 1996; Mäki, 1996). For all the attention it has received, however, some important aspects of the book's thesis have not been developed properly. Two important ones are (1) what might be called, following the terminology used in the experimental economics literature, the ‘framing effect’ of Hausman's definition of economics, and (2) the significance of Hausman's claim that economists are committed to developing economics as a ‘separate’ science. To understand these points it is important to make explicit the position from which Hausman approaches the philosophy of science.

scholarly journals First Price Auctions, Lotteries, And Risk Preferences Across Institutions

2011 ◽  
Vol 9 (11) ◽  
pp. 9 ◽  
Author(s):  
Russell Engel
Keyword(s):  
Experimental Economics ◽  
Risk Preferences ◽  
Risk Preference ◽  
Risk Averse ◽  
Font Size ◽  
Risk Parameter ◽  
Economics Literature ◽  
Sealed Bid ◽  
Sealed Bid Auctions ◽  
Risk Parameters

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none;" class="MsoBodyText"><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><span style="font-family: Times New Roman;">There is an unsettled debate in experimental economics literature regarding the consistency of individuals' risk preferences in varying institutions. Much of this debate stems from observations of subjects' bids in sealed-bid auctions and the implications of those bids. In this paper, I have subjects participate in a sealed-bid auction experiment and then examine if the ostensible risk parameter that one can back out from subjects' bids matches up with their elicited risk preference from a separate task in the experiment. I find that subjects do exhibit consistent risk preferences. The aggregate measure of the subjects' risk parameter is stable across both tasks, the estimated numeric values of subjects' risk parameters are stable across tasks, and the ranking of subjects (most risk averse to least risk averse) is stable across both tasks.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

Galilean Reflections on Milton Friedman’s "Methodology of Positive Economics", with Thoughts on Vernon Smith’s "Economics in the Laboratory"

2007 ◽  
pp. 55-70 ◽  
Author(s):  
E. Schliesser
Keyword(s):  
Experimental Evidence ◽  
Experimental Economics ◽  
Nobel Prize ◽  
Free Fall ◽  
Nobel Prize Winner ◽  
Theoretical Physics ◽  
History Of ◽  
Positive Economics

The article examines in detail the argument of M. Friedman as expressed in his famous article "Methodology of Positive Economics". In considering the problem of interconnection of theoretical hypotheses with experimental evidence the author illustrates his thesis using the history of the Galilean law of free fall and its role in the development of theoretical physics. He also draws upon methodological ideas of the founder of experimental economics and Nobel prize winner V. Smith.

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