Resource title

Competition on common value markets with naèive traders: a theoretical and experimental analysis

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Resource description

Theoretically and experimentally, we generalize the analysis of acquiring a company (Samuelson and Bazerman 1985) by allowing for competition of both, buyers and sellers. Naivety of both is related to the idea that higher prices exclude worse qualities. While competition of naive buyers increases prices, competition of naive sellers promotes effciency enhancing trade. Our predictions are tested experimentally.

Resource author

Nadine Chlaß, Werner Güth

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25679

Resource license

Adapt according to the presented license agreement and reference the original author.