Results UDESA 2008

Here we post some recent results of our ‘Simple’ experiment. For more information about the experiment, refer to here

The set of experiments were conducted in the Unversidad de San Andres (Buenos Aires) on 26/06/2008 and 12/07/2008. The players were students of our course in “Models with Bounded Rationality” for the Masters program in economics.

Please note the following:

Starting from cost with ranking

In this experiment, each player started with an initial price equal to the cost of the product, and one each time step, they were informed on the actual price ranking they had on their previous move.

The price histogram (discarting the first 15 time steps is:

Starting from equilibrium price

In order to reach a stationary state in less steps, we performed an experiment where the players were given as additional information the competitive equilibrium price of the system.

The parameters of this experiment were: M=80, cost=0.9, maximum production (qmax) = 3 which resulted in an equilibrium price (peq) = 2.222.

The price histogram (discarting the first 15 time steps is: