No-Trade in the Laboratory
نویسندگان
چکیده
We test the no-trade theorem in a laboratory financial market where subjects can trade an asset whose value is unknown. Subjects receive clues on the asset value and then set a bid and an ask at which they are willing to buy or to sell from the other participants. In treatments with no gains from trade, we should observe no trading activity, whereas, in treatments with gains, trade becomes theoretically possible. Our experimental results show that subjects fail to reach the no trade equilibrium by pure introspection, but they learn to approach it over time, through market feedback and learning. (JEL C92, D8, G12, G14)
منابع مشابه
The Effects of Trade Integration, Globalization and Foreign Direct Investments on Employment in Iranian Manufacturing Sector
This paper focuses on two major aspects of globalization: international trade and FDI and their impacts on manufacturing employment in Iran and study whether foreign direct investment and trade expansion with Asian and European partner played any role in shaping the Iranian manufacturing employment structure. This study incorporates globalization (KOF index), trade integration and FDI into a si...
متن کاملTrade Potential of Turkey with Asia-Pacific Countries: Evidence from Panel Gravity Model
As a result of recent developments, global economic centre of gravity has slide to Asia-Pacific region. It is predicted that Asia-Pacific countries will take place at the first row in global trade and nearly a half of the total trade will intensify in this region at the year 2030. On the other hand, the region covers countries from different levels of development. These features of the region p...
متن کاملInvestigating the situation and evolution of carpet production and trade in Sultan abad during the Qajar period
This article has no abstract.
متن کاملChallenges and Prospects for Bilateral Trade and Investment between Iran and South Korea
This paper aims to identify key challenges facing Iran and South Korea in their bilateral trade and investment relations. In particular, it is concerned with the policy implications which can be useful for policy makers and business people of both countries. For this purpose, we review and analyze the recent developments of the Iranian economy and bilateral trade and investment relations betwee...
متن کاملThe Impact of Trade Liberalization on Industrial Growth of India: An Empirical Investigation
This paper examines impact of trade liberalization on industrial growth of India. The research problem is expressed as âTo what extent does trade liberalization or openness of the economy influence industrial growth of India?â To identify the impacts of trade liberalization, total time period, 1970-2010, is divided into two sub periods of before trade liberalization i.e. (1970 to 1990) an...
متن کامل