Logo
Munich Personal RePEc Archive

Markets as economizers of information: Field experimental examination of the “Hayek Hypothesis”

Al-Ubaydli, Omar and Boettke, Peter (2010): Markets as economizers of information: Field experimental examination of the “Hayek Hypothesis”.

This is the latest version of this item.

[thumbnail of MPRA_paper_36585.pdf]
Preview
PDF
MPRA_paper_36585.pdf

Download (366kB) | Preview

Abstract

The work of Friedrich Von Hayek contains several testable predictions about the nature of market processes. Vernon Smith termed the most important one the ‘Hayek hypothesis’: the gains from trade can be realized in the presence of diffuse, decentralized information, and in the absence of price-taking behavior and centralized market direction. Vernon Smith tested this by surveying data on laboratory experimental markets and found strong support. We repeat this exercise using field experimental market data. Using field experiments allows us to test several other predictions. Generally speaking, we find support for Hayek’s theories.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.