Some Market Experiments with Policy Implications

该奖项资助三个涉及市场实验的不同项目。 所有这三个项目都涉及制定经济政策所用模型的标准假设的行为相关性。 第一个项目推广了传统的价格制定寡头垄断博弈，考虑的影响，有卖方提前生产决策，而不是需求，并给予产品一定的耐久性有限。 第二个项目考虑宏观经济学微观基础中的一个重要问题：价格和信息摩擦是名义扰动引起的真实的影响的来源。 第三个项目是涉及金融市场监管的应用。 当监管机构？纠正措施会影响公司吗的基本价值，纠正行动的可能性可能会破坏证券价格的信息价值。 实验评估的重要性，这种相互作用之间的安全价格和监管机构？更广泛的影响：这些实验中的每一个都揭示了一个背景下，传统上用作政策行动基础的模型的预测重要地依赖于在自然环境中难以评估的基本假设。 决策实验是一种有用的方法，可以洞察偏离这些传统假设的行为后果。此外，该研究小组正在一所开放式城市公立大学和联邦储备系统之间建立新的合作。 本科生研究助理将广泛接触研究如何为政策提供信息。

This award funds three different projects involving market experiments. All three projects address the behavioral relevance of standard assumptions underlying models used in formulating economic policy. The first project generalizes the conventional price setting oligopoly game by considering the effects of having sellers make production decisions in advance rather than to demand, and also by giving products some limited durability. The second project considers an important issue in the micro-foundations of macroeconomics: price and information frictions as a source of real effects caused by nominal disturbances. The third project is an application involving the regulation of financial markets. When regulators? corrective actions affect a firm?s fundamental value, the very possibility of corrective action may undermine the informative value of security prices. The experiment evaluates the importance of this interaction between security prices and regulator?s decisions, and it evaluates the corrective power of some potential remedies such as prediction markets.Broader Impacts: Each of these experiments sheds light on a context where the predictions of a model conventionally used as a basis for policy actions depends importantly on underlying assumptions that are difficult to evaluate in natural contexts. Decision making experiments are a useful way to can insight into the behavioral consequences of deviations from these conventional assumptions. In addition, the research team is building new collaborations between an open access urban public university and the Federal Reserve system. Undergraduate research assistants will get a broad exposure to how research informs policy.