On rational forward-looking behavior in economic geography: An experimental analysis
comunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
comunitat-uji-handle4:
INVESTIGACIONMetadata
Title
On rational forward-looking behavior in economic geography: An experimental analysisDate
2021Publisher
ElsevierISSN
0166-0462Bibliographic citation
BARREDA-TARRAZONA, Iván; KUNDU, Tapas; ØSTBYE, Stein. On rational forward-looking behavior in economic geography: An experimental analysis. Regional Science and Urban Economics, 2021, vol. 87, p. 103654Type
info:eu-repo/semantics/articlePublisher version
https://www.sciencedirect.com/science/article/pii/S0166046221000144Version
info:eu-repo/semantics/publishedVersionSubject
Abstract
This paper adapts the canonical New Economic Geography model for experimental testing of the model's behavioral assumptions by developing a finite-player, finite-horizon dynamic game of migration. Our analysis gives ... [+]
This paper adapts the canonical New Economic Geography model for experimental testing of the model's behavioral assumptions by developing a finite-player, finite-horizon dynamic game of migration. Our analysis gives distinctive predictions when migration is consistent with myopic behavior (MB) and when it is consistent with sequentially rational or perfect forward-looking behavior (FB). These alternatives are tested in an economic laboratory experiment with increasing number of agents in different treatments. Results show that perfect FB loses ground against MB as the number of agents and periods increases, and this number may be surprisingly small. [-]
Is part of
Regional Science and Urban Economics, 2021, vol. 87, p. 103654Funder Name
Universitat Jaume I | Ministerio de Ciencia, Innovación y Universidades | Universidad de Tromsø (UiT The Arctic University of Norway)
Project code
UJI-B2018-76/77 | RTI2018-096927-B-100 | 381940
Rights
© 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess
This item appears in the folowing collection(s)
- ECO_Articles [696]
The following license files are associated with this item: