Published 2013
| Version Published
Book Section - Chapter
An Experimental Investigation of the Patterns of International Trade
-
1.
California Institute of Technology
Contributors
Editor:
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.
Additional details
Related works
- Describes
- Book Section - Chapter: https://econpapers.repec.org/RePEc:wsi:wschap:9789814390125_0017 (URL)
- Is new version of
- Working Paper: https://authors.library.caltech.edu/records/efbvc-2wm14 (URL)
- Is variant form of
- Journal Article: https://authors.library.caltech.edu/records/fdkpv-hr565 (URL)
Caltech Custom Metadata
- Caltech groups
- Social Science Working Papers
- Series Name
- Tricontinental series on global economic issues
- Series Volume or Issue Number
- 3
- Other Numbering System Name
- Social Science Working Paper
- Other Numbering System Identifier
- 799
- Publication Status
- Published