Document Type
Article
Publication Date
2008
Abstract
We report an experiment designed to study whether ine cient rms are systematically driven from overcrowded markets. Our data set includes series of 3800 wars of attrition of a type modeled in Fudenberg and Tirole (1986). We nd that exit tends to be e cient and exit times conform surprisingly well to point predictions of the model. Moreover, subjects respond similarly to implementations framed in terms of losses as they do to those framed in terms of gains.
Recommended Citation
Oprea, R., Wilson, B.J., & Zillante, A. (2008). War of attrition: Evidence from a laboratory experiment on market exit. ESI Working Paper 08-02. Retrieved from http://digitalcommons.chapman.edu/esi_working_papers/147
COinS
Comments
Working Paper 08-02