On rational forward-looking behavior in economic geography: An experimental analysis

B-Tier
Journal: Regional Science and Urban Economics
Year: 2021
Volume: 87
Issue: C

Authors (3)

Barreda-Tarrazona, Iván (not in RePEc) Kundu, Tapas (OsloMet- storbyuniversitetet) Østbye, Stein (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper adapts the canonical New Economic Geography model for experimental testing of the model's behavioral assumptions by developing a finite-player, finite-horizon dynamic game of migration. Our analysis gives distinctive predictions when migration is consistent with myopic behavior (MB) and when it is consistent with sequentially rational or perfect forward-looking behavior (FB). These alternatives are tested in an economic laboratory experiment with increasing number of agents in different treatments. Results show that perfect FB loses ground against MB as the number of agents and periods increases, and this number may be surprisingly small.

Technical Details

RePEc Handle
repec:eee:regeco:v:87:y:2021:i:c:s0166046221000144
Journal Field
Urban
Author Count
3
Added to Database
2026-01-24