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EXPERIMENTAL MARKETS WITH FRICTIONS
Author(s) -
Camera Gabriele,
Casari Marco,
Bigoni Maria
Publication year - 2013
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/joes.12018
Subject(s) - outcome (game theory) , economics , duration (music) , focus (optics) , microeconomics , economy , art , literature , physics , optics
Decentralized and impersonal exchange is fundamental to contemporary economies, where many interactions take place among individuals with low levels of information about their counterpart. We review the experimental literature about markets with frictions, where strangers interact in pairs formed at random in economies of indefinite duration. We focus on the impact of communication on the efficiency of the outcome and report results of a new experiment.