Graduation Year
Spring 2011
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
David Bjerk
Terms of Use & License Information
Rights Information
© 2011 Myles MacDonald
Abstract
Behavioral economics is widely recognized as a rising field in economics, one whose discoveries and implications are not yet completed or understood. At the same time, economic theory plays an enormous role in our governmental and legal system. In particular, the Coase Theorem and its implications have affected nearly every area in the field of law and economics. This paper proposes a experimental test of Coasean bargaining in situations using two competitive players whose payoffs depend on minimizing their costs of mitigating the externality. A rational player’s action can be predicted ahead of time, and the rationality of the game’s outcome can be objectively measured. If behavioral effects found in consumer goods situations by other experimenters carry over to competitive business situations, then a substantial review of law regarding such situations is in order.
Recommended Citation
MacDonald, Myles R., "A New Experiment on Rational Behavior" (2011). CMC Senior Theses. 133.
https://scholarship.claremont.edu/cmc_theses/133
Included in
Behavioral Economics Commons, Law and Economics Commons, Property Law and Real Estate Commons, Torts Commons
