Kloosterman, Andrew. An Experimental Study of Public Information in the Asymmetric
Partnership Game Southern Economic Journal, 2019, 85(3), pp. 663-690.
Kloosterman, Andrew and Paul, Stephen.
Ultimatum Game Bargaining in a Partially Directed Search Market Journal of Economic Behavior & Organization, 2018, 154, pp. 60-74.
Kloosterman, Andrew and Schotter, Andrew.
Complementary Institutions and Economic Development: An Experimental Study Games and Economic Behavior, 2016, 99, pp. 186-205.
Directed Search with Heterogeneous Firms: An Experimental Study Experimental Economics, 2016, 19(1), pp. 51-66.
Public Information in Markov Games Journal of Economic Theory, 2015, 157, pp. 28-48.
A Simple Experimental Test of the Coase Conjecture: Fairness in Dynamic Bargaining
(joint with Jack Fanning)
We conduct a novel experimental test of the Coase conjecture using subjects' private
information about preferences for fairness. In an infinite horizon bargaining
game, a proposer proposes a division of chips, until a responder accepts. Given
private information about fairness preferences and patient players, the Coase conjecture
predicts almost immediate agreement on equal payoffs. We test this for
two different chip-to-money exchange rates, and compare outcomes to ultimatum
games. Behavior closely matches theory. In particular, when chips are worth more
to proposers than responders, initial offers, minimum acceptable offers, responder
payoffs and efficiency are significantly larger in the infinite horizon.
Cooperation to the Fullest Extent Possible? An Infinitely Repeated Games Experiment
Laboratory experiments on the infinitely repeated prisoner's dilemma, and other similar cooperation games,
find little cooperation when the discount factor is near the theoretical cutoff discount factor for which
cooperation can be supported in equilibrium. The explanation is that the non-cooperative equilibrium is risk
dominant; it is the best response to most beliefs about what the other player will choose. I study a new game
where cooperation is risk dominant at the cutoff to understand whether cooperation can be empirically observed
to the fullest extent that theory says is possible. The main finding is that there is still not pervasive
cooperation, just 41% and 35% in period 0 of the game for the last 10 matches in two respective treatments.
Cooperation is a best response to almost all beliefs in the latter treatment indicating that eliminating strategic
risk is not sufficient to obtain cooperation.
Repeated Partnerships with Multiple Equilibria and Imperfect Monitoring: An Experimental Study
I investigate finitely repeated partnership games with imperfect monitoring where both mutual effort and mutual shirking
are Nash equilibria of the stage game. The treatment variable is the number of repetitions. I find that period 1 effort
rates are increasing in the number of repetitions, but subjects use trigger strategies that switch to permanent shirking
after enough failed projects so effort rates decrease across time in all treatments. Additionally, the rate of decrease
is less when there are more repetitions. These results are consistent with a theory of strategic uncertainty in which a
subject best responds to their beliefs about whether their partner exerts effort or shirks. Finally, I show that total
effort does not vary much across the treatments, because the increased period 1 effort when the number of repetitions is
small is mostly canceled out by the erosion of effort as the game progresses.
Cooperation in Stochastic Games: A Prisoner's Dilemma Experiment
This experiment investigates a stochastic version of the infinitely repeated prisoner's dilemma.
The stochastic element introduces the importance of beliefs about the future for supporting cooperation
as well as cooperation and defection on the equilibrium path. There is more cooperation in treatments
where beliefs predict cooperation after subjects gain sufficient experience. There is some evidence for cooperation
and defection as predicted by equilibrium, but there is stronger evidence for behavior conditioning on past actions
that is not consistent with equilibrium play. In particular, subjects continue cooperating even when it is no
longer possible in equilibrium for the realized game.
Essentially Stable Matchings
(joint with Peter Troyan and David Delacrétaz)
We propose a solution to the conflict between fairness and efficiency in matching
markets. A matching is essentially stable if any priority-based claim initiates a chain
of reassignments that results in the initial claimant losing the object. We show that
an essentially stable and Pareto efficient matching always exists and investigate the
properties of the set of essentially stable matchings. We then classify popular Pareto
efficient mechanisms: those based on Shapley and Scarf's TTC mechanism are not
essentially stable, while Kesten's EADA mechanism is. The simplicity of our concept
makes it particularly well-suited for practical applications.
School Choice with Asymmetric Information: Priority Design and the Curse of Acceptance
(joint with Peter Troyan)
We generalize standard school choice models by allowing for interdependent preferences
and differentially-informed students. We show that in general, the commonly-used
deferred acceptance mechanism is no longer strategy-proof, the outcome is not
(ex-post) stable, and may make less informed students worse off. We attribute these
results to a curse of acceptance. However, we also show that if priorities are designed
appropriately, positive results are recovered: equilibrium strategies are simple, the outcome
is ex-post stable, and less informed students are protected from the curse of
acceptance. Our results have implications for the current debate over priority design
in school choice.
Works in Progress
Signal Jamming and Collusion
An Experimental Study of Payment Scheme Sorting into Markets for Credence Goods (joint with Ellen Green)