Uncertainty and Shopping Behavior: An Experimental Analysis
Abstract
This paper reports experimental tests of three search equilibrium models. These models which differ only in the search strategies available to the buyers have qualitatively different predictions, that is, equilibria: price distributions, single price equilibria at the competitive price and at the monopoly price and two price equilibria. The experimental outcomes generally were consistent with the models' predictions. This suggests that debate on the utility of this class of models should shift to the realism of the models' assumptions rather than focus on their ability to characterize market outcomes. Also, since the basic models have been validated, the project of analyzing experimentally the results of relaxing some of their assumptions seems worthwhile.
Additional Information
Revised. Original dated to March 1984. The support of the National Science Foundation Grant No. SES 81-17708 is gratefully acknowledged. James Gerard provided very useful assistance in the running of these experiments. Published as Grether, David M., Alan Schwartz, and Louis L. Wilde. "Uncertainty and shopping behaviour: an experimental analysis." The Review of Economic Studies 55.2 (1988): 323-342.Attached Files
Submitted - sswp511_-_revised.pdf
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Additional details
- Eprint ID
- 81640
- Resolver ID
- CaltechAUTHORS:20170920-150120256
- SES-8117708
- NSF
- Created
-
2017-09-20Created from EPrint's datestamp field
- Updated
-
2019-10-03Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 511