Charles R. Plott

An Experimental Analysis of the Structure of Legal Fees: American Rule vs. (2007)

English Rule, Peter J. Coughlan, Charles R. Plott

The expanding volume of lawsuits and the ballooning of legal expenditures in recent years has attracted the interest, concern, and even anger of the American public and politicians. These...

Pasadena, California 91125 (2007)

Öð� Ê Èðóøø, Jacob K. Goeree, Charles R. Plott, John Wooders

Sales of multiple real-estate properties are often conducted via a sequence of ascending auctions, giving the winner at each stage the right to choose one of the available lots. We show that when...

Exchange Asymmetries Incorrectly Interpreted as Evidence of Endowment Effect Theory and Prospect Theory? (2007)

Plott, Charles R., Zeiler, Kathryn

Systematic asymmetries in exchange behavior have been widely interpreted as support for "endowment effect theory," an application of prospect theory positing that loss aversion and utility function...

Exchange Asymmetries incorrectly interpreted as evidence of endowment effect theory and prospect theory? (2007)

Plott, Charles R., Zeiler, Kathryn

Systematic asymmetries in exchange behavior have been widely interpreted as support for “endowment effect theory,” an application of prospect theory positing that loss aversion and utility...

The predictive power of Box office prophecy (2007)

Charles R. Plott

Overall, Box office Prophecy is very successful. The data show that amazingly accurate predictions can be made. Ten or so participants between them often have enough information to accurately assign...

The predictive power of Box office prophecy (2007)

Charles R. Plott

Overall, Box office Prophecy is very successful. The data show that amazingly accurate predictions can be made. Ten or so participants between them often have enough information to accurately assign...

The predictive power of Box office prophecy (2007)

Charles R. Plott

Overall, Box office Prophecy is very successful. The data show that amazingly accurate predictions can be made. Ten or so participants between them often have enough information to accurately assign...

Exchange Asymmetries Incorrectly Interpreted as Evidence of Endowment Effect Theory and Prospect Theory? (2006)

Plott, Charles R, Zeiler, Kathryn

Systematic asymmetries in exchange behavior have been widely interpreted as support for "endowment effect theory," an application of prospect theory positing that loss aversion associated with...

Exchange Asymmetries Incorrectly Interpreted as Evidence of Endowment Effect Theory and Prospect Theory? (2006)

Plott, Charles R, Zeiler, Kathryn

Systematic asymmetries in exchange behavior have been widely interpreted as support for "endowment effect theory," an application of prospect theory positing that loss aversion associated with...

The willingness to pay-willingness to accept gap, the "endowment effect," subject misconceptions, and experimental procedures for eliciting valuations (2005)

Plott, Charles R., Zeiler, Kathryn

We conduct experiments to explore the possibility that subject misconceptions, as opposed to a particular theory of preferences referred to as the “endowment effect,” account for reported gaps...

FORCED INFORMATION DISCLOSURE AND THE FALLACY OF TRANSPARENCY IN MARKETS (2005)

Cason, Timothy N., Plott, Charles R.

A theory advanced in regulatory hearings holds that market performance will be improved if one side of the market is forced to publicly reveal preferences. For example, wholesale electricity...

Forced Information Disclosure and the Fallacy of Transparency in Markets (2005)

Cason, Timothy N., Plott, Charles R.

A theory advanced in regulatory hearings holds that market performance will be improved if one side of the market is forced to publicly reveal preferences. For example, wholesale electricity...

Information Aggregation Mechanisms: Concept, Design and Implementation for a Sales Forecasting Problem (2002)

Öð� Ê Èðóøø, Kay-yut Chen, Kay-yut Chen, Hewlett Packard Laboratories, Hewlett Packard Laboratories, Charles R. Plott, ...

Information Aggregation Mechanisms are economics mechanisms designed explicitly for the purpose of collecting and aggregating information. The modern theory of rational expectations, together with...

Experimental Study of Interdependent Systems: Markets and Networks (1998)

Plott, Charles R.

This report covers some of the first applications of laboratory experimental methods in economics to the problems of understanding the principles that govern adjustments in complex networks of...

The Principles of Exchange Rate Determination in an International Finance Experiment (1997)

Noussair, Charles N., Plott, Charles R., Riezman, Raymond G.

This paper reports the first experiments designed to explore the behavior of economies with prominent features of international finance. Two “countries,” each with its own currency, were created....

The Groves-Ledyard Mechanism: An Experimental Study of Institutional Design (1996)

Yan Chen, Charles R. Plott, Arthur "skip Lupia

The Groves-Ledyard mechanism theoretically can solve the "free-rider" problem in public good provision in certain environments. Two questions are of overriding importance in implementing...

The effect of two trading institutions on price expectations and the stability of supply-response lag markets (1989)

Johnson, Michael David, Plott, Charles R.

A series of four experimental markets are described which examine the effect that different trading institutions have on sellers' price expectations and market behavior. The results suggest that when...

THE EFFECTS OF MARKET PRACTICES IN OLIGOPOLISTIC MARKETS: AN EXPERIMENTAL EXAMINATION OF THE ETHYL CASE (1984)

GRETHER, DAVID M., PLOTT, CHARLES R.

This study reports on the performance of experimental markets characterized by industrial structure and practices similar to those at issue in the Ethyl case. The central question is whether price...

Information Aggregation in Double Auctions: Rational Expectations and the Winner’s Curse (1891)

Öð� Ê Èðóøø, Serena Guarnaschelli, Anthony M. Kwasnica, Charles R. Plott

This paper inquires about the ability of double auction institutions to aggregate information in the context of a “common value ” information structure that is known to produce the winner’s...

IN A COMMON-POOL RESOURCE ENVIRONMENT (1891)

Öð� Ê Èðóøø, Marco Casari, Marco Casari, Charles R. Plott, Charles R. Plott

The role of a specific institution in avoiding a "tragedy of the commons" situation in a common pool-resource environment is studied experimentally. The resource users privately...

Aging and Decision Making: A Comparison between Neurologically Healthy Elderly and Young Individuals (1891)

Ú� Å �ö�ø��ö, Stephanie Kovalchik, Colin F. Camerer, David M. Grether, Charles R. Plott, John M. Allman

We report the results of experiments on economic decisions with two populations, one of healthy elderly individuals (average age 82) and one of younger students (average age 20). We examine...

Rate Filing Policies for Inland Water Transportation: An Experimental Approach

James T. Hong, Charles R. Plott

This study uses laboratory experiments to explore the possible consequences of a proposed rate publication policy for the domestic, dry bulk commodity transportation industry on inland waterways. The...

Rational Expectations and the Aggregation of Diverse Information in Laboratory Security Markets.

Plott, Charles R, Sunder, Shyam

The study explores the information aggregation properties of experimental markets. A fully-revealing rational expectations equilibrium exists in the competitive model of each of the markets studied....

On the microstructure of price determination and information aggregation with sequential and asymmetric information arrival in an experimental asset market

Martin Barner, Francesco Feri, Charles R. Plott

Experiments were conducted on an asset with the structure of an option. The information of any individual is limited, as if only the direction of movement of the option value known for a single...

Basic Principles of Asset Pricing Theory: Evidence From Large-Scale Experimental Financial Markets

Bossaerts, Peter, Plott, Charles R.

We report on six large-scale nancial markets experiments that were designed to test two of the most basic propositions of modern asset pricing theory, namely, that the interaction between risk averse...

Parimutuel betting markets as information aggregation devices: experimental results

Charles R. Plott, Jorgen Wit, Winston C. Yang

The demonstrated capacity of markets to aggregate information motivates research on alternative institutions designed to do the same task. This study inquires about forms of parimutuel betting...

Bidders' Choice Auctions: Raising Revenues Through the Right to Choose

Jacob K. Goeree, Charles R. Plott, John Wooders

Sales of multiple real-estate properties are often conducted via a sequence of ascending auctions, giving the winner at each stage the right to choose one of the available lots. We show that when...

An Experimental Investigation of the Patterns of International Trade.

Noussair, Charles N, Plott, Charles R, Riezman, Raymond G

This paper studies a laboratory economy with some of the prominent features of an international economic system. The patterns of trade and output predicted by the law of comparative advantage are...

Forced information disclosure and the fallacy of transparency in markets

Cason, Timothy N., Plott, Charles R.

A theory advanced in regulatory hearings holds that market performance will be improved if one side of the market is forced to publicly reveal preferences. For example, wholesale electricity...

Aging and decision making: A comparison between neurologically healthy elderly and young individuals

Kovalchik, Stephanie, Camerer, Colin F., Grether, David M., Plott, Charles R., Allman, John M.

We report the results of experiments on economic decisions with two populations, one of healthy elderly individuals (average age 82) and one of younger students (average age 20). We examine...

Information Aggregation in Experimental Asset Markets: Traps and Misaligned Beliefs

Noeth, Markus, Camerer, Colin F., Plott, Charles R., Webber, Martin

The capacity of markets to aggregate information has been conclusively demonstrated but the limitations of that capacity have still not been fully explored. In this paper, we demonstrate the...

An Experimental Analysis of the Structure of Legal Fees: American Rule vs. English Rule

Coughlan, Peter J., Plott, Charles R.

The expanding volume of lawsuits and the ballooning of legal expenditures in recent years has attracted the interest, concern, and even anger of the American public and politicians. These...

Laboratory Experimental Testbeds: Application to the PCS Auction

Charles R. Plott

The paper reviews the uses of laboratory experimental economics methods in the background research and implementation of the Personal Communication Systems auctions held by the Federal Communications...

Exchange Asymmetries Incorrectly Interpreted as Evidence of Endowment Effect Theory and Prospect Theory?

Charles R. Plott, Kathryn Zeiler

Systematic asymmetries in exchange behavior have been widely interpreted as support for "endowment effect theory," an application of prospect theory positing that loss aversion and utility function...

An Experimental Analysis of Unanimity in Public Goods Provision Mechanisms.

Banks, Jeffrey S, Plott, Charles R, Porter, David P

This paper reports on an experimental investigation of four methods of allocating public goods. The two basic processes studied ar e direct contribution and a public goods auction process. Both of...

Nonspeculative Bubbles in Experimental Asset Markets: Lack of Common Knowledge of Rationality vs. Actual Irrationality.

Lei, Vivian, Noussair, Charles N, Plott, Charles R

We report the results of an experiment designed to study the role of speculation in the formation of bubbles and crashes in laboratory asset markets. In a setting in which speculation is not...

The Willingness to Pay–Willingness to Accept Gap, the "Endowment Effect," Subject Misconceptions, and Experimental Procedures for Eliciting Valuations

Charles R. Plott, Kathryn Zeiler

We conduct experiments to explore the possibility that subject misconceptions, as opposed to a particular theory of preferences referred to as the "endowment effect," account for reported gaps...

Exchange Economies and Loss Exposure: Experiments Exploring Prospect Theory and Competitive Equilibria in Market Environments.

Myagkov, Mikhail, Plott, Charles R

Exchange economies were created in which individuals faced losses. If people are risk seeking in the losses, as predicted by prospect theory, then due to the nonconvexity, the competitive equilibria...

Marshallian vs. Walrasian Stability in an Experimental Market.

Plott, Charles R, George, Glen

Twelve markets were studied. All markets had downward sloping supply functions created by Marshallian-type external economies in which the costs of individual firms increase with their own volume but...

General equilibrium, markets, macroeconomics and money in a laboratory experimental environment

Peng Lian, Charles R. Plott

This paper reports on the use of laboratory experimental techniques to create relatively complete economic systems. The creation of these market systems reflects a first attempt to explore the nature...

General equilibrium, markets, macroeconomics and money in a laboratory experimental environment

Peng Lian, Charles R. Plott

This paper reports on the use of laboratory experimental techniques to create relatively complete economic systems. The creation of these market systems reflects a first attempt to explore the nature...

A Study of Zero-Out Auctions: Testbed Experiments of a Process of Allocating Private Rights to the Use of Public Property.

Guler, Kemal, Plott, Charles R, Vuong, Quang H

This paper applies an experimental testbed methodology to the evaluation of a proposed mechanism for allocating the right to land at the New York airports. The mechanism is called a "zero-out...

Forced Information Disclosure and the Fallacy of Transparency in Markets

Timothy N. Cason, Charles R. Plott

A theory advanced in regulatory hearings holds that market performance will be improved if one side of the market is forced to publicly reveal preferences. For example, wholesale electricity...

Market Stability: Backward-Bending Supply in a Laboratory Experimental Market: 1999 Presidential Address Western Economic Association.

Plott, Charles R

This article investigates the stability properties of markets with backward-bending supply curves. Parameters are chosen so that the two classic models of price dynamics, the Walrasian model and the...

The Principles of Exchange Rate Determination in an International Financial Experiment.

Noussair, Charles N, Plott, Charles R, Riezman, Raymond G

This paper reports the first experiments designed to explore the behavior of economies with prominent features of international finance. Two 'countries,' each with its own currency, were created....

Differences in the Economic Decisions of Men and Women: Experimental Evidence

Eckel, Catherine C., Grossman, Philip J., Charles R. Plott, Vernon L. Smith

This chapter reviews the results from public goods, ultimatum, and dictator experiments for evidence of systematic differences in the behavior of men and women. While the results do not offer...

The design of improved parimutuel-type information aggregation mechanisms: Inaccuracies and the long-shot bias as disequilibrium phenomena

Axelrod, Boris S., Kulick, Ben J., Plott, Charles R., Roust, Kevin A.

Information aggregation mechanisms (IAMs) based on parimutuel-type betting systems can aggregate information from complex environments. However, the performance of previously studied systems is...

Instability of Equilibria in Experimental Markets: Upward-Sloping Demands, Externalities, and Fad-Like Incentives

Charles R. Plott, Jared Smith

The objective of the paper is to study markets in which the value of the activity to any one person increases with the level with which the activity is undertaken by others. The general...

COLLUSION FACILITATING AND COLLUSION BREAKING POWER OF SIMULTANEOUS ASCENDING AND DESCENDING PRICE AUCTIONS

ALEXANDER L. BROWN, CHARLES R. PLOTT, HEIDI J. SULLIVAN

"This article demonstrates that a robust tacit collusion evolves quickly in a "collusion incubator" environment but is destroyed by the simultaneous descending price auction. Theories of...

TACIT COLLUSION IN AUCTIONS AND CONDITIONS FOR ITS FACILITATION AND PREVENTION: EQUILIBRIUM SELECTION IN LABORATORY EXPERIMENTAL MARKETS

JIN LI, CHARLES R. PLOTT

"The paper studies bidder behavior in simultaneous, continuous, ascending price auctions. We design and implement a "collusion incubator" environment based on a type of public, symmetrically "folded"...