Partial equilibrium mechanism and inter-sectoral coordination: An experiment

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 190
Issue: C
Pages: 366-389

Authors (4)

Hanaki, Nobuyuki (Osaka University) Hayashi, Takashi (not in RePEc) Lombardi, Michele (University of Liverpool) Ogawa, Kazuhito (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

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.

Technical Details

RePEc Handle
repec:eee:jeborg:v:190:y:2021:i:c:p:366-389
Journal Field
Theory
Author Count
4
Added to Database
2026-01-25