Data and Code for: "Competition and Price Transparency in the Market for Lemons: Experimental Evidence"
Principal Investigator(s): View help for Principal Investigator(s) Olivier Bochet, NYU Abu Dhabi; Simon Siegenthaler, University of Texas at Dallas
Version: View help for Version V1
Name | File Type | Size | Last Modified |
---|---|---|---|
CompetitionAndPriceTransparency-Data.dta | application/x-stata | 21.4 MB | 12/16/2019 12:45:PM |
CompetitionAndPriceTransparency-DataAnalysis.do | text/x-stata-syntax | 14 KB | 02/13/2020 09:21:AM |
CompetitionAndPriceTransparency-DataBargaining.xlsx | application/vnd.openxmlformats-officedocument.spreadsheetml.sheet | 4.4 MB | 12/16/2019 12:18:PM |
CompetitionAndPriceTransparency-DataRiskTask.xlsx | application/vnd.openxmlformats-officedocument.spreadsheetml.sheet | 27.4 KB | 12/16/2019 11:22:AM |
PredictionsTable3and6.nb | text/plain | 60.7 KB | 04/30/2020 06:36:AM |
README.txt | text/plain | 578 bytes | 04/24/2020 05:17:AM |
Project Citation:
Bochet, Olivier, and Siegenthaler, Simon. Data and Code for: “Competition and Price Transparency in the Market for Lemons: Experimental Evidence.” Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-04-12. https://doi.org/10.3886/E116771V1
Project Description
Summary:
View help for Summary
In markets with asymmetric information, where equilibria are often inefficient, bargaining can help promote welfare. We design an experiment to examine the impact of competition and price transparency in such settings. Consistent with the theoretical predictions, we find that competition promotes efficiency if bargainers cannot observe each other’s price offers. Contrary to the predictions, however, the efficiency-enhancing effect of competition persists even when offers are observable. We explore different behavioral explanations for the absence of a detrimental effect of price transparency. Remarkably, implementing the strategy method improves subjects’ conditional reasoning, delivering the predicted loss in efficiency when offers are observable.
Scope of Project
Subject Terms:
View help for Subject Terms
Bargaining;
Adverse Selection;
Price Transparency;
Strategic Complexity
JEL Classification:
View help for JEL Classification
C70 Game Theory and Bargaining Theory: General
C92 Design of Experiments: Laboratory, Group Behavior
D82 Asymmetric and Private Information; Mechanism Design
C70 Game Theory and Bargaining Theory: General
C92 Design of Experiments: Laboratory, Group Behavior
D82 Asymmetric and Private Information; Mechanism Design
Geographic Coverage:
View help for Geographic Coverage
Switzerland and Spain
Universe:
View help for Universe
University students in Switzerland and Spain.
Data Type(s):
View help for Data Type(s)
experimental data
Methodology
Response Rate:
View help for Response Rate
100%, lab study.
Sampling:
View help for Sampling
Online recruiting platform ORSEE.
Collection Mode(s):
View help for Collection Mode(s)
other
Unit(s) of Observation:
View help for Unit(s) of Observation
Individuals
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.