SFB 303 Discussion Paper No. A - 491
Author: Heid, Frank, and Heike Orth-Schwall
Title: The Law of Demand: An Experimental Analysis
Abstract: A direct test of the Law of Demand necessitates significant price
movements in a short time interval, thus rather prohibiting traditional time
series analysis. Our experiment sidesteps this methodological difficulty by
creating artificial markets with real consumption goods where the
determination of prices is left to the experimenter. The results strongly
support the Law of Demand by emphasizing the effect of aggregation.
Creation-Date: November 1995
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