Experimental Economics and Game Theory Seminar for December 6

Events, Seminars | November 25, 2019

Join us for the ICES Seminar in Experimental Economics and Game Theory of the Fall 2019 semester, featuring Jon de Quidt.

Dr. de Quidt, of Institute for International Economic Studies at Stockholm University, will discuss his paper Can Market Design Help the World’s Poor? Evidence from a Lab Experiment on Land Trade (Abstract). The talk will take place on Friday, December 6th, from 4:00 to 5:00pm in room 5183 of Vernon Smith Hall, Arlington campus.
Visit the Seminar schedule to access the paper and to learn more about upcoming speakers.

Abstract

Market design has increased efficiency in complex reallocation problems in the developed world. Because reallocation may be necessary for development, there is potential for market design to contribute to reducing poverty. A key constraint is that low levels of literacy and numeracy may preclude the poor from benefiting from complex market designs. To understand the importance of this constraint, we conducted a lab-in-the-field experiment with Kenyan small-holder farmers. Farmers traded land in a hypothetical environment where theory suggests a package auction would thicken markets and reduce exposure risk. Comparing performance in a more complex package auction to a simpler continuous double auction we show that the added complexity increased efficiency, reducing the gap to the first best by around 26%. We find no evidence that the added complexity increased inequality.

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