EconPapers    
Economics at your fingertips  
 

Market Culture: How Rules Governing Exploding Offers Affect Market Performance

Muriel Niederle () and Alvin Roth ()

American Economic Journal: Microeconomics, 2009, vol. 1, issue 2, 199-219

Abstract: Many markets encounter difficulty maintaining a thick marketplace because they experience transactions made at dispersed times. To address such problems, many markets try to establish norms concerning when offers can be made, accepted, and rejected. Examining such markets suggests it is difficult to establish a thick market at an efficient time if firms can make exploding offers, and workers cannot renege on early commitments. Laboratory experiments allow us to isolate the effects of exploding offers and binding acceptances. In a simple experiment, we find inefficient early contracting when firms can make exploding offers and applicants' acceptances are binding. (JEL C91, D40, D81)

JEL-codes: C91 D40 D81 (search for similar items in EconPapers)
Date: 2009
Note: DOI: 10.1257/mic.1.2.199
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/mic.1.2.199 (application/pdf)
http://www.aeaweb.org/aej/mic/data/2007-0007_data.zip (application/zip)
http://www.aeaweb.org/aej/mic/app/2007-0007_app.pdf (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Market Culture: How Rules Governing Exploding Offers Affect Market Performance (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aejmic:v:1:y:2009:i:2:p:199-219

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Microeconomics is currently edited by Johannes Hörner

More articles in American Economic Journal: Microeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2019-08-20
Handle: RePEc:aea:aejmic:v:1:y:2009:i:2:p:199-219