CONGESTION MODELS WITH CONSISTENT CONJECTURES

This paper demonstrates that, in situations in which a cumulative externality exists, the basic nature and extent of resource misallocation may be substantially less than we imagine. This conclusion stems from deriving consistent conjectures in a unified framework in which congestion is present. Experiments support the conclusion that, when numbers of agents are small, when there is little heterogeneity among them, and when they have the opportunity to observe each other during repeated experiment, the market allocation may be efficient.


Issue Date:
1996-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/22372
Published in:
Australian Journal of Agricultural Economics, Volume 40, Number 3
Page range:
9-279
Total Pages:
271




 Record created 2017-04-01, last modified 2017-10-22

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