Market interaction and efficient cooperation

Jordi Brandts and Arno Riedl

European Economic Review, 2020, vol. 121, issue C

Abstract: We experimentally study causal effects of competitive experience in markets with a short and a long side on efficiency levels attained in a subsequent social dilemma. We find that market experience affects efficiency when traders previously competed in the same market on the same side. The effect is strong for market-loser pairs and also exists for market-winner pairs, albeit to a lesser extent. Cooperation efficiency is unaffected for pairs consisting of a market-winner and a market-loser. When traders did not interact on the same market before, efficiency of cooperation is higher for market-winner pairs, but only in the short run.

Keywords: Competitive market; Social dilemma; Experiment (search for similar items in EconPapers)
JEL-codes: A13 C92 D30 D60 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S001429211930176X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Market Interaction and Efficient Cooperation (2016)
Working Paper: Market Interaction and Efficient Cooperation (2016)
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:eee:eecrev:v:121:y:2020:i:c:s001429211930176x

DOI: 10.1016/j.euroecorev.2019.103318

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().