This paper describes the basic laboratory experiment design that has been developed to assess a new Multilateral Bargaining institution that may be used for trade negotiations. Our overall objective is to implement a series of laboratory experiments that tests the ability of this institutions to resolve trade disputes. In section 2 we provide a brief overview of the new institution that is being studied; details may be found in Rausser and Simon [1991a] [1991b]. In section 3 we discuss several aspects of our experiment design, especially the careful wording required in our instructions to subjects. In section 4 we document how we have been able to solve the model numerically, using flexible and powerful software that will allow much richer models to be solved. Finally, in section 5 we document the use of computer software that has been developed to actually conduct the laboratory experiments.
Iowa State University
Harrison, Glenn W. and Simon, Leo K., "Instructional Manual for Burden Sharing and Public Goods Investments in Policy" (1992). GATT Research Papers. 55.