EconPapers    
Economics at your fingertips  
 

Do short-term laboratory experiments provide valid descriptions of long-term economic interactions? A study of Cournot markets

Hans-Theo Normann (), Till Requate () and Israel Waichman ()

No 100, DICE Discussion Papers from University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Abstract: One key problem regarding the external validity of laboratory experiments is their duration: while economic interactions out in the field are often lengthy processes, typical lab experiments only last for an hour or two. To address this problem for the case of both symmetric and asymmetric Cournot duopoly, we conduct internet treatments lasting more than a month. Subjects make the same number of decisions as in the short-term counterparts, but they decide once a day. We compare these treatments to corresponding standard laboratory treatments and also to short-term internet treatments lasting one hour. We do not observe differences in behavior between the short- and long-term in the symmetric treatments, and only a small difference in the asymmetric treatments. We overall conclude that behavior is not considerably different between the short- and long-term.

Keywords: internet experiment; Cournot oligopoly; long-term interactions; methodology; internet vs. laboratory experiment (search for similar items in EconPapers)
JEL-codes: L13 C93 C72 D43 D21 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-com and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/78223/1/75654727X.pdf (application/pdf)

Related works:
Journal Article: Do short-term laboratory experiments provide valid descriptions of long-term economic interactions? A study of Cournot markets (2014) 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:zbw:dicedp:100

Access Statistics for this paper

More papers in DICE Discussion Papers from University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2020-11-11
Handle: RePEc:zbw:dicedp:100