It is sometimes said that economics does not predict. In fact, Lin et al. (2020) (SSRN) (including Colin Camerer) find that the classic supply and demand model predicts behavior and outcomes in the double oral auction experiment in thousands of different experiments across the world. The model predicts average prices, final prices, who buys, who […] The post The Supply and Demand Model Predicts Behavior in Thousands of Experiments appeared first on Marginal REVOLUTION.
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The double oral auction was one of the first experiments that Vernon Smith ran. He was...The double oral auction was one of the first experiments that Vernon Smith ran. He was expecting to find that the supply and demand model didn’t work. Instead, the results changed his life and led to a Nobel prize: I am still recovering from the shock of the experimental results. The outcome was unbelievably consistent […] The post Free Tool to Run the Double Oral Auction Experiment appeared first on Marginal REVOLUTION.