Hanaki, Nobuyuki, Hayashi, Takashi, Lombardi, Michele 
ORCID: 0000-0002-8613-053X and Ogawa, Kazuhito
(2021)
Partial equilibrium mechanism and inter-sectoral coordination: An experiment.
JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION, 190.
pp. 366-389.
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Abstract
This study experimentally evaluates the performance of partial equilibrium mechanisms when different sectors run their mechanisms separately, despite the existence of complementarity between them. In our simple laboratory experiment setting that includes two sectors, each sector runs the top-trading-cycle mechanism. There is a Pareto-dominant equilibrium, but it requires coordination across sectors. Our results show that coordination failure occurs more frequently when there is asymmetry between the two sectors compared with the one-sector benchmark, even without inter-sectoral complementarity. When mechanisms are run sequentially across the two sectors, such failure is substantially reduced, compared with when they are run simultaneously.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Partial equilibrium, Inter-sectoral coordination, Top-trading-cycle mechanism, Laboratory experiment |
| Divisions: | Faculty of Humanities and Social Sciences > School of Management |
| Depositing User: | Symplectic Admin |
| Date Deposited: | 10 Dec 2021 08:51 |
| Last Modified: | 19 Feb 2023 02:30 |
| DOI: | 10.1016/j.jebo.2021.07.038 |
| Related URLs: | |
| URI: | https://livrepository.liverpool.ac.uk/id/eprint/3144964 |
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