Friday Meeting - Stein Ostbye (The Arctic University of Norway - UiT)

"History versus Expectations in Economic Geography: An Experimental Analysis"
Quand ? Le 10-03-2017,
de 10:00 à 12:00
Où ? ISEM - Salle SCI
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10 mars 2017 - 

Salle SCI ISEM – 10:00-12:00

Friday Meeting - Stein Østbye (The Arctic University of Norway - UiT)

Title: History versus expectations in economic geography: An experimental analysis 

Abstract: When introducing migration in the New Economic Geography (NEG) framework, dynamics used in trade theory to model capital mobility was reinterpreted and added to the framework.  Attempts have later been made to rationalize the dynamics as rational household migration behavior. The first aim of the present paper is to critically review the relevant literature in order to facilitate sound research on migration within the NEG framework. The paper presents a game-theoretic framework that gives clearly distinctive predictions when migration behavior is myopic and when it is forward-looking. The two alternatives are tested in an economic laboratory experiment with increasing number of agents in different treatments [WORK IN PROGRESS]. We conjecture that results may show that forward-looking behavior (expectations) is replaced by myopic behavior (history) as number of agents increase and that the number can be very small.