Working Paper: NBER ID: w22113
Authors: Omar Alubaydli; John A. List
Abstract: This is a review of the literature of field experimental studies of markets. The main results covered by the review are as follows: (1) Generally speaking, markets organize the efficient exchange of commodities; (2) There are some behavioral anomalies that impede efficient exchange; (3) Many behavioral anomalies disappear when traders are experienced.
Keywords: field experiments; markets; behavioral economics
JEL Codes: C93; D01; D03
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| behavioral anomalies (D91) | efficient exchange of commodities (F16) |
| inexperienced traders (G14) | reluctance to trade (F14) |
| trader experience (F19) | behavioral anomalies (D91) |
| more experienced traders (F10) | loss aversion (G41) |
| more experienced traders (F10) | endowment effect (D11) |
| markets (G10) | efficient exchange of commodities (F16) |