The trading rules for the first price auction can be summarized as follows. A single object is offered in perfectly inelastic supply to N 2 bidders. Each bidder submits a single bid for the commodity with the understanding that the commodity will be awarded to the highest bidder at a price...

The emergence of empirical evidence suggesting divergence between the willingness- to-accept (WTA), for the sale of an object, and the willingness-to-pay (WTP), for the purchase of an object, has resulted in two explanations. Further they argue that the endowment effect will not apply when the...

The assumption that under optimal nodal pricing passive transmission line owners collect all the congestion rents on a constrained line, as well as incremental loss rents, is not supported by the experimental results in a three-node radial network system with four buyers and six generators at...

This study was commissioned by a futures market Exchange firm plagued by members' trading off-floor in strict violation of the Exchange's rules requiring transactions to be made on the Exchange floor during trading hours in the assigned trading areas. Any violation of these rules is a major...

This chapter hypothesizes that any short-run failure of markets to clear depends upon buyers knowing that increased profits result from higher prices. In the absence of this knowledge buyers may give in quickly to the equilibrating tendencies of the market. The chapter suggests that fairness' in...

This chapter focuses on the effect of non- binding price controls in double auction trading.Static price theory predicts that non-binding price ceilings and floors will have no effect on price determination in double auction markets. In fact they have substantial effects on price dynamics....