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- Title
Market architectures, institutional landscapes and testbed experiments.
- Authors
Plott, Charles R.
- Abstract
The market architecture defines a process through which the terms of contracts among agents become agreed upon. The institutional landscape must be defined in operational terms, consistent with the limitations of human perceptions and understanding, as well as the limitations imposed by both the physical world and the availability of resources. This operational aspect of designer markets is facilitated by the use of testbed experiments. Testbed experiments involve the actual implementation of a process. The purpose of a testbed are to determine if the process can be implemented and its working. Various experiments have been conducted by several scientists to validate the theory. Experimental methods are providing a link between the purest of pure theory of economics and the most applied aspects of economics. The experiments provide the data from special cases. The theory provides an interpretation of the lessons learned from the special cases and also provides the tool needed for generalizing the implications to the more complex cases that traditionally have been of interest to economists.
- Subjects
ECONOMICS; MARKETING research; ARCHITECTURAL design; INDUSTRIAL organization (Economic theory); SCIENTIFIC experimentation; ECONOMISTS; COMPETITION; SOCIAL scientists
- Publication
Economic Theory, 1994, Vol 4, Issue 1, p3
- ISSN
0938-2259
- Publication type
Article
- DOI
10.1007/BF01211116