Data and Code for: The Times They Are A-Changing: Experimenting With Dynamic Adverse Selection

This is data and analysis code for our paper at AEJ:Microeconomics. In the paper we examine a common-value dynamic matching environment where adverse selection accrues slowly over time. Theoretical best responses are therefore time varying, and where the prior experimental literature suggests that sequential environments might lead to greater understanding of adverse selection in this dynamic setting. However, while a sophisticated minority in our experiment do condition on time and are close to a best response, the majority use a stationary response, even after extended experience. In an environment with persistent uncertainty, our results indicate that sequentiality is insufficient for the large majority of participants to recognize the effects of adverse selection.<br>