The Robustness of Lemons in Experimental Markets
Experimental Law and Economics
ISBN: 978-1-83867-538-7, eISBN: 978-1-83867-537-0
Publication date: 28 February 2022
In this chapter, the authors conduct a robustness study for the classic experimental results of Lynch, Miller, Plott, and Porter (1986, 1991). The authors find strong support for the original hypotheses in an updated experimental marketplace, consisting of dichotomous product qualities, non-binding signals of product quality, fixed seller identifiers, and an end-point design of deliberate ambiguity. The authors show that fixed identifiers alone are not sufficient devices to support efficient outcomes in these updated market conditions.
We would like to offer thanks for the comments and suggestions from: the FSU experimental social sciences (XS/FS) readings group, the participants at the Charles Plott symposium at Caltech, and participants at the Southeast Experimental Retreat. Charles Plott has been particularly gracious and helpful. Furthermore, we thank the John and Hallie Quinn chair, the Charles and Persis Rockwood Fellowship, and the L. Charles Hilton Center for support. As always, any remaining errors are strictly our own. The authors declare that they have no competing interests.
Dunkle, B., Isaac, R.M. and Solimine, P. (2022), "The Robustness of Lemons in Experimental Markets", Isaac, R.M. and Kitchens, C. (Ed.) Experimental Law and Economics (Research in Experimental Economics, Vol. 21), Emerald Publishing Limited, Bingley, pp. 201-216. https://doi.org/10.1108/S0193-230620220000021009
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