Metadata record for Data and Code for: "Competition and Price Transparency in the Market for Lemo Experimental Evidence"
116771
Inter-university Consortium for Political and Social Research
ICPSR metadata records are licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.
V1
Data and Code for: "Competition and Price Transparency in the Market for Lemo Experimental Evidence"
116771
http://doi.org/10.3886/E116771V1
Olivier Bochet
Simon Siegenthaler
Please see full citation.
This work is licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) License.
Ann Arbor, MI: Inter-university Consortium for Political and Social Research
Bochet, Olivier, and Siegenthaler, Simon. Data and Code for: “Competition and Price Transparency in the Market for Lemo Experimental Evidence.” Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-04-12. https://doi.org/10.3886/E116771V1
Bargaining
Adverse Selection
Price Transparency
Strategic Complexity
C70 Game Theory and Bargaining Theory: General
C92 Design of Experiments: Laboratory, Group Behavior
D82 Asymmetric and Private Information; Mechanism Design
In markets with asymmetric information, where equilibria are often inefficient, bargaining can help promote welfare. We design an experiment to examine the impact of competition and price transparency in such settings. Consistent with the theoretical predictions, we find that competition promotes efficiency if bargainers cannot observe each other’s price offers. Contrary to the predictions, however, the efficiency-enhancing effect of competition persists even when offers are observable. We explore different behavioral explanations for the absence of a detrimental effect of price transparency. Remarkably, implementing the strategy method improves subjects’ conditional reasoning, delivering the predicted loss in efficiency when offers are observable.
Switzerland and Spain
Individuals
University students in Switzerland and Spain.
experimental data
Online recruiting platform ORSEE.
other
100%, lab study.