Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248598 
Year of Publication: 
2021
Series/Report no.: 
ISER Discussion Paper No. 1138
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
This study experimentally evaluates the performance of partial equilibrium mechanisms when different sectors run their mechanisms separately, despite the existence of complementarity between them. In our simple laboratory experiment setting that includes two sectors, each sector runs the top-trading-cycle mechanism. There is a Pareto-dominant equilibrium, but it requires coordination across sectors. Our results show that coordination failure occurs more frequently when there is asymmetry between the two sectors compared with the one-sector benchmark, even without inter-sectoral complementarity. When mechanisms are run sequentially across the two sectors, such failure is substantially reduced, compared with when they are run simultaneously.
Subjects: 
Partial equilibrium
inter-sectoral coordination
top-trading-cycle mechanism
laboratory experiment
JEL: 
C92
D71
D82
Document Type: 
Working Paper

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