Hanaki, N., Hayashi, T. , Lombardi, M. and Ogawa, K. (2021) Partial equilibrium mechanism and inter-sectoral coordination: an experiment. Journal of Economic Behavior and Organization, 190, pp. 366-389. (doi: 10.1016/j.jebo.2021.07.038)
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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: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Hayashi, Professor Takashi and Lombardi, Dr Michele |
Authors: | Hanaki, N., Hayashi, T., Lombardi, M., and Ogawa, K. |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | Journal of Economic Behavior and Organization |
Publisher: | Elsevier |
ISSN: | 0167-2681 |
ISSN (Online): | 1879-1751 |
Published Online: | 19 August 2021 |
Copyright Holders: | Copyright © 2021 Elsevier B.V. |
First Published: | First published in Journal of Economic Behavior and Organization 190: 366-389 |
Publisher Policy: | Reproduced in accordance with the publisher copyright policy |
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