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Global instability in experimental general equilibrium: the Scarf example

Anderson, Christopher M. and Plott, Charles R. and Shimomura, Ken-Ichi and Granat, Sander (2004) Global instability in experimental general equilibrium: the Scarf example. Journal of Economic Theory, 115 (2). pp. 209-249. ISSN 0022-0531. https://resolver.caltech.edu/CaltechAUTHORS:20140220-140231241

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Abstract

Scarf (Int. Econ. Rev. 1 (1960) 157) proposed a model of dynamic adjustment in which the standard tatonnement price adjustment process orbits around, rather than converges to, the competitive equilibrium. Hirota (Int. Econ. Rev. 22 (1981) 461) characterized the price paths. We explore the predictions of Scarf's model in a non-tatonnement experimental double auction. The average transaction prices in each period do follow the path predicted by the Scarf and Hirota models. When the model predicts convergence the data converge; when the model predicts orbits, the data orbit in the direction predicted by the model. Moreover, we observe a weak tendency for prices within a period to follow the path predicted by the model.


Item Type:Article
Related URLs:
URLURL TypeDescription
http://dx.doi.org/10.1016/S0022-0531(03)00185-6 DOIArticle
http://www.sciencedirect.com/science/article/pii/S0022053103001856PublisherArticle
http://resolver.caltech.edu/CaltechAUTHORS:20170808-153221745Related ItemWorking Paper
Additional Information:© 2003 Elsevier Inc. Received 25 October 2002; final version received 13 March 2003. The financial support of the National Science Foundation and the Caltech Laboratory for Experimental Economics and Political Science is gratefully acknowledged. Funding support for Shimomura was provided by the Kyoto Center for the Study of Complex Economic Systems supported by Japan MEXT and the Japanese Bankers Association Foundation. Mason Porter and Daniel Song contributed to the early stages of the research. Helpful comments were received from Mahmoud El-Gamal, David Grether, Masayoshi Hirota, Anjan Mukherji, Daniel Rowe and Herbert Scarf.
Group:Social Science Working Papers
Funders:
Funding AgencyGrant Number
NSFUNSPECIFIED
Caltech Laboratory for Experimental Economics and Political ScienceUNSPECIFIED
Kyoto Center for the Study of Complex Economic SystemsUNSPECIFIED
Ministry of Education, Culture, Sports, Science and Technology (MEXT)UNSPECIFIED
Japanese Bankers Association FoundationUNSPECIFIED
Subject Keywords:general equilibrium, stability, experiments
Other Numbering System:
Other Numbering System NameOther Numbering System ID
Social Science Working Paper1086
Issue or Number:2
Classification Code:JEL: D50; C92; E3
Record Number:CaltechAUTHORS:20140220-140231241
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20140220-140231241
Official Citation:Christopher M. Anderson, Charles R. Plott, Ken-Ichi Shimomura, Sander Granat, Global instability in experimental general equilibrium: the Scarf example, Journal of Economic Theory, Volume 115, Issue 2, April 2004, Pages 209-249, ISSN 0022-0531, http://dx.doi.org/10.1016/S0022-0531(03)00185-6. (http://www.sciencedirect.com/science/article/pii/S0022053103001856)
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:43911
Collection:CaltechAUTHORS
Deposited By: Susan Vite
Deposited On:20 Feb 2014 22:50
Last Modified:03 Oct 2019 06:12

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