Assignment:
For this paper you will read a published paper from an academic economics journal that provides an experimental test of one of the models that we will study during our ECON course. You will write a review of the paper that you choose (4-6 pages), focused on the following questions:
•What is the theory being tested by the paper, and what are the predictions of that theory?
•Are there any ways that the experiment proposed in the paper noticeably differs from the basic theory? If so, why did they make these changes in the experiment?
•Do the results match the predictions of the theory? If so, how robust are the results and what are the magnitudes of the results? If not, how are the results different from the predictions, and what might be driving this difference?
•What are the strengths and weaknesses of the paper at hand, especially in regard to testing the relevant theory?
•Are there any areas for improvement or extension for the paper (such as additional predictions of the theory, testing related models, checking for the robustness of results under varying conditions)?
The following papers are suggested for this project (related theory in bold):
•Apesteguia, Jose, Martin Dufwenberg, and Reinhard Selten. "Blowing the whistle." Economic Theory 31.1 (2007): 143-166. [Collusion/Deterrence]
•Dufwenberg, Martin, and Uri Gneezy. "Price competition and market concentration: an experimental study." International Journal of Industrial Organization 18.1 (2000): 7-22. [Bertrand Competition]
•Isaac, R. Mark, and Vernon L. Smith. "In search of predatory pricing." The Journal of Political Economy 93.2 (1985): 320-345. [Predation]
•Reynolds, Stanley S. "Durable-goods monopoly: laboratory market and bargaining experiments." The RAND Journal of Economics (2000): 375-394. [Durable goods monopoly]
for the models, this is course outline, pleases use models from these following topic.
Course Outline: The course will cover the following topics, time permitting. Accompanying chapters of Martin given in parentheses:
i.Introduction and background of IO
ii.Game Theor
iii.Basic market structure
iv.Oligopoly
v.Structure of Industries
vi.Product Differentiation
vii.Mergers and Contracts
viii.Collusion/Cartels
ix.Moral Hazard and Adverse Selection (n/a)
x.Price Discrimination
xi.Market Leadership
xii.Innovation