War of Attrition: Evidence from a Laboratory Experiment on Market Exit

Ryan Oprea, Bart Wilson and Arthur Zillante

Working Papers from Chapman University, Economic Science Institute

Abstract: We report an experiment designed to study whether inecient rms are systematically driven from overcrowded markets. We implement a series of 3800 wars of attrition of a type modeled in Fudenberg and Tirole (1986). Exit tends to be ecient and exit times conform reasonably well to point predictions of the model. Moreover, we nd that subjects respond similarly to implementations framed in terms of losses as they do to those framed in terms of gains.

Keywords: Market exit; war of attrition; experimental economics (search for similar items in EconPapers)
JEL-codes: C92 D21 L11 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.chapman.edu/ESI/wp/WarofAttrition.pdf (application/pdf)

Related works:
Journal Article: WAR OF ATTRITION: EVIDENCE FROM A LABORATORY EXPERIMENT ON MARKET EXIT (2013)
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:chu:wpaper:08-02

Access Statistics for this paper

More papers in Working Papers from Chapman University, Economic Science Institute Contact information at EDIRC.
Bibliographic data for series maintained by Megan Luetje ().