unique equilibrium, which is separating. Higher-quality sellers post higher prices, so price signals quality. The arrival … higher continuation values. For some parameter values, higher-quality sellers post the full-information price; for other … values these sellers have to post a higher price to keep lower-quality sellers from mimicking them. In an extension, we show …

This experiment compares the price dynamics and bubble formation in an asset market with a price adjustment rule in … three treatments where subjects (1) submit a price forecast only, (2) choose quantity to buy/sell and (3) perform both tasks …. We find deviation of the market price from the fundamental price in all treatments, but to a larger degree in treatments …

We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with …