CaltechAUTHORS
  A Caltech Library Service

Rational Choice in Experimental Markets

Plott, Charles R. (1986) Rational Choice in Experimental Markets. Journal of Business, 59 (4, pt. 2). S301-S327. ISSN 0021-9398 . http://resolver.caltech.edu/CaltechAUTHORS:20140324-154921364

[img]
Preview
PDF - Published Version
See Usage Policy.

492Kb

Use this Persistent URL to link to this item: http://resolver.caltech.edu/CaltechAUTHORS:20140324-154921364

Abstract

The theory of rational behavior has several different uses. First, it is used at the most fundamental level of experimental methodology to induce preferences used as parameters in models. Second, it appears repeatedly in experimentally successful mathematical models of complex phenomena such as speculation, bidding, and signaling. Third, it is used as a tool to generate ex post models of results that are otherwise inexplicable. Finally, it has been used as a tool successfully to design new institutions to solve specific problems. When tested directly, the theory can be rejected. It is retained because neither an alternative theory nor an alternative general principle accomplishes so much.


Item Type:Article
Related URLs:
URLURL TypeDescription
http://www.jstor.org/stable/2352762PublisherArticle
http://resolver.caltech.edu/CaltechAUTHORS:20170913-163001013Related ItemWorking Paper
Additional Information:© 1986 The University of Chicago. Financial support from the National Science Foundation and from the Caltech Program of Enterprise and Public Policy is gratefully acknowledged. I wish to thank Kemal Guler for his help in processing the data used in Sec. III. I also wish to thank Barry Weingast and Harvey Reed for their collaboration on the ideas and background data processing that form that section Reprinted in Rational Choice: The Contrast between Economics and Psychology, edited by Robin M. Hogarth and Melvin W. Reder. Chicago: University of Chicago Press, 1987. Reprinted in The Limits of Rationality, edited by Karen Schweers Cook and Margaret Levi. Chicago: University of Chicago Press, 1990.
Funders:
Funding AgencyGrant Number
NSFUNSPECIFIED
Caltech Program of Enterprise and Public PolicyUNSPECIFIED
Record Number:CaltechAUTHORS:20140324-154921364
Persistent URL:http://resolver.caltech.edu/CaltechAUTHORS:20140324-154921364
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:44482
Collection:CaltechAUTHORS
Deposited By: Susan Vite
Deposited On:26 Mar 2014 21:42
Last Modified:15 Sep 2017 17:58

Repository Staff Only: item control page