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An Experimental Investigation of the Patterns of International Trade

Noussair, Charles N. and Plott, Charles R. and Riezman, Raymond G. (1995) An Experimental Investigation of the Patterns of International Trade. American Economic Review, 85 (3). pp. 462-491. ISSN 0002-8282. https://resolver.caltech.edu/CaltechAUTHORS:20140303-152552477

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Abstract

This paper studies a laboratory economy with some of the prominent features of an international economic system. The patterns of trade and output predicted by the law of comparative advantage are observed evolving within the experimental markets. Market prices and quantities move in the direction of the competitive equilibrium, but the quantitative predictions of the (risk neutral) competitive equilibrium are rejected. Considerable amounts of economic activity occur as disequilibria. Factor-price equalization is observed, but there is a universal tendency for factors of production to trade at prices below their marginal products.


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http://www.jstor.org/stable/2118183JSTORArticle
http://resolver.caltech.edu/CaltechAUTHORS:20170829-141750589Related ItemWorking Paper
Additional Information:© 1995 American Economic Association. We acknowledge the financial support of the National Science Foundation and the Caltech Laboratory for Experimental Economics and Political Science. The comments of Charles Holt have been useful. The comments of Mahmoud El-Gamal were especially helpful and resulted in the econometric model used extensively in the paper.
Group:Social Science Working Papers
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Caltech Laboratory for Experimental Economics and Political ScienceUNSPECIFIED
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Social Science Working Paper799
Issue or Number:3
Classification Code:JEL: D50, F00, F30
Record Number:CaltechAUTHORS:20140303-152552477
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20140303-152552477
Official Citation:An Experimental Investigation of the Patterns of International Trade Charles N. Noussair, Charles R. Plott and Raymond G. Riezman The American Economic Review , Vol. 85, No. 3 (Jun., 1995) , pp. 462-491 Published by: American Economic Association Article Stable URL: http://www.jstor.org/stable/2118183
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:44110
Collection:CaltechAUTHORS
Deposited By: Susan Vite
Deposited On:03 Mar 2014 23:38
Last Modified:03 Oct 2019 06:14

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