Do short-term laboratory experiments provide valid descriptions of long-term economic interactions? A study of Cournot markets.

Normann, Hans-Theo, Requate, Till and Waichman, Israel (2014) Do short-term laboratory experiments provide valid descriptions of long-term economic interactions? A study of Cournot markets. Experimental Economics, 17 (3). pp. 371-390. DOI 10.1007/s10683-013-9373-9.

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Abstract

One key problem regarding the external validity of laboratory experiments is their duration: while economic interactions out in the field are often lengthy processes, typical lab experiments only last for an hour or two. To address this problem for the case of both symmetric and asymmetric Cournot duopoly, we conduct internet treatments lasting more than a month. Subjects make the same number of decisions as in the short-term counterparts, but they decide once a day. We compare these treatments to corresponding standard laboratory treatments and also to short-term internet treatments lasting one hour. We do not observe differences in behavior between the short- and long-term in the symmetric treatments, and only a small difference in the asymmetric treatments. We overall conclude that behavior is not considerably different between the short- and long-term.

Document Type: Article
Additional Information: Times Cited: 0 0
Keywords: Internet experiment Cournot oligopoly Long-term interactions Methodology Internet vs. laboratory experiment
Research affiliation: OceanRep > The Future Ocean - Cluster of Excellence > FO-R03
OceanRep > The Future Ocean - Cluster of Excellence > FO-R02
OceanRep > The Future Ocean - Cluster of Excellence
Kiel University
Refereed: Yes
Open Access Journal?: No
DOI etc.: 10.1007/s10683-013-9373-9
ISSN: 1386-4157
Projects: Future Ocean
Date Deposited: 30 Mar 2015 12:36
Last Modified: 10 Jul 2019 12:52
URI: http://oceanrep.geomar.de/id/eprint/28087

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