Newtonian Asset Pricing.

This paper explores a pricing algorithm which behaves as a Walrasian auctioneer under the following constraints: [i] traders arrive randomly and each sales/purchase order should be carried out at the currently posted price (sequential service), [ii] the auctioneer need not know the exact fundamental value of the traded asset (s), and [iii] price movements depend only upon trade orders, not upon which traders submit these orders (anonymous traders). The suggested auctioneering algorithm is such that the arrivals of sales and purchase orders affect the second-order increment (acceleration), not directly the first-order increment (velocity), of the price.