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Industrial Organization Theory and Experimental Economies

Charles R. Plott-1982-12-01-CaltechAUTHORS (California Institute of Technology)

TL;DRAbstract

The Introduction of laboratory experimentation
\nin economics was motivated
\nby theories of industrial organization
\nand market performance. The first
\npublished market experiments were those
\nof Edward H. Chamberlin (1948). He explored
\nthe behavioral characteristics of
\nmarkets he described as being "purely"
\nbut not "perfectly" competitive and he
\nthought that the principles of monopolistic
\ncompetition would be more useful than
\nthe textbook theory of demand and supply
\nin explaining the observed behavior. Austin
\nC. Hoggatt (1959) and Heinz Sauermann
\nand Reinhard Selten (1959) both focused
\non markets with three competitors
\nand independently provided the first experimental
\nevidence that the Cournot
\nmodel might be a reasonably accurate description
\nof oligopolistic behavior. Oligopoly
\nand bilateral monopoly motivated
\nthe classic work of Lawrence E. Fouraker
\nand Sidney

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The Introduction of laboratory experimentation
\nin economics was motivated
\nby theories of industrial organization
\nand market performance. The first
\npublished market experiments were those
\nof Edward H. Chamberlin (1948). He explored
\nthe behavioral characteristics of
\nmarkets he described as being "purely"
\nbut not "perfectly" competitive and he
\nthought that the principles of monopolistic
\ncompetition would be more useful than
\nthe textbook theory of demand and supply
\nin explaining the observed behavior. Austin
\nC. Hoggatt (1959) and Heinz Sauermann
\nand Reinhard Selten (1959) both focused
\non markets with three competitors
\nand independently provided the first experimental
\nevidence that the Cournot
\nmodel might be a reasonably accurate description
\nof oligopolistic behavior. Oligopoly
\nand bilateral monopoly motivated
\nthe classic work of Lawrence E. Fouraker
\nand Sidney

Keywords

Monopolistic competitionOligopolyEconomicsCompetitor analysisMonopolyCompetition (biology)Industrial organizationMarket structure

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