Rationality and the Nature of the Market

摘要: We investigate the distribution of risk preferences and frequency expected utility violations along gradient market devel- opment. To do this, we collect experimental survey data from a random sample population at four sites in Peru that difier their level competition development. Similar to previous studies, flnd vio- lations theory are frequent. More importantly, however, far less frequent more competitive is. Also, our study suggests experience trade is not always associated with fewer behavioral anomalies. For instance, wholesale traders an oligopolistic mar- ket many years likely violate than entrepreneurs adjacent experience. As hypothesized by Alchian (1950), it highly markets where evidence rational behavior found.