Information, Learning and Expectations in an Experimental Model Economy

Roos, Michael WM, and Wolfgang J. Luhan. “Information, learning and expectations in an experimental model economy." Economica 80.319 (2013): 513-531.
source: http://onlinelibrary.wiley.com/doi/10.1111/ecca.12003/full

==Abstract==

The experimental ‘learning-to-forecast’ literature finds that subjects use simple linear backward-looking models when forecasting in environments with little to no inout the economic framework. We study the formation of expectations in a laboratory economy of monopolistic firms and labour unions with almost complete knowledge of the model. We observe simple backward-looking rules, but also a considerable share of model-based expectations using information on the economic structure. At least for some subjects, expectations are informed by theory. As in the previous literature, we find individual prediction rules to be heterogeneous.

On monopolistic licensing strategies under asymmetric information

Schmitz, Patrick W. “On monopolistic licensing strategies under asymmetric information." Journal of Economic Theory 106.1 (2002): 177-189.uni-muenchen.de 提供的 [PDF]

Abstract

Consider a research lab that owns a patent on a new technology but cannot develop a marketable final product based on the new technology. There are two downstream firms that might successfully develop the new product. If the downstream firms’ benefits from being the sole supplier of the new product are private information, the research lab will sometimes sell two licenses, even though under complete information it would have sold one exclusive license. This is in contrast to the standard result that a monopolist will sometimes serve fewer, but never more buyers when there is private information. Journal of Economic Literature Classification Numbers: L12, D45, D82

Keywords

• licenses;
• innovation;
• monopoly;
• private information

Durable-goods monopoly: laboratory market and bargaining experiments

Reynolds, Stanley S. “Durable-goods monopoly: laboratory market and bargaining experiments." The RAND Journal of Economics (2000): 375-394. arizona.edu 提供的 [PDF]

==Abstract:==

Results from single-period monopoly experiments (nondurable environment) are compared with results from multiperiod monopoly experiments that have features of a durable-goods environment. Average prices were below the static monopoly benchmark price in all settings. Observed initial prices were higher in multiperiod experiments than in single-period experiments, in contrast to equilibrium predictions. Prices in multiperiod experiments tended to fall over time; there was less price cutting in market experiments than in bargaining experiments. There was substantial demand withholding by buyers in multiperiod experiments. A version of bounded rationality is a promising candidate for explaining deviations from equilibrium predictions.

On the evolution of monopoly pricing in Internet-assisted search markets

On the evolution of monopoly pricing in Internet-assisted search markets

Date:	2013
By:	Aurora García-Gallego (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain) Nikolaos Georgantzis (GLOBE & Economics Department, University of Granada, Spain) Ainhoa Jaramillo-Gutiérrez (EriCes & Dpt. of Applied Economics, University of Valencia, Spain) Pedro Pereira (Autoridade da Concorrência and CEFAGE-UE, U. of Evora, Portugal) J. Carlos Pernías-Cerrillo (Economics Department, Universitat Jaume I, Castellón, Spain)
URL:	http://d.repec.org/n?u=RePEc:jau:wpaper:2013/05&r=net
	We study the evolution of prices in markets assisted by price-comparison engines. We use laboratory data obtained under two industry sizes and two conditions concerning the sample (complete, incomplete) of prices available to informed consumers. Distributions are typically bimodal. One of the two modes, corresponding to monopoly prices, tends to increasingly attract prices over time. The second one, corresponding to interior prices, presents a decreasing trend. Monopoly pricing can be used as an insurance against more competitive (but riskier) behavior. In fact, subjects earning low profits due to interior pricing in the past are more likely to choose monopoly pricing.
Keywords:	Internet Economics, price-comparison search engines, mixed strategy equilibria, experimental economics
JEL:	D0