The pure exchange model is the foundation of the neoclassical theory of value, yet equilibrium predictions and price adjustment dynamics for this model remained untested prior to the experiment reported in this paper. With the exchange economy replicated several times, prices and allocations in...

We report results from fifteen computerized double auctions with concurrent trading of two commodities. In contrast to prior experimental markets, buyers' demands are induced via CES earnings functions defined over the two traded goods, with a fiat money expenditure constraint. Sellers receive...

The rate of convergence to Nash equilibrium of continuous fictitious play is determined for a generic set of utilities and initial beliefs in 2 x 2 games. In addition, an example is provided comparing the rate of convergence of discrete fictitious play to the rate for continuous fictitious play....

The rate of convergence to Nash equilibrium of continuous fictitious play is determined for a generic set of utilities and initial beliefs in 2 þ 2 games. In addition, an example is provided comparing the rate of convergence of discrete fictitious play to the rate for continuous fictitious...