"Two important decisions in designing markets for tradable emissions permits are whether to allow banking and whether to allow trading in entitlements to future permits. Banking is predicted to reduce price instability when firms trade in a reconciliation market after the quantity of emissions...

Posted offer and double auction pricing institutions are examples of fixed and flexible pricing institutions, respectively. In laboratory settings, double auction markets dominate posted offer institutions in terms of the amount of potential surplus which traders are able to extract. These...

The effects of advance production in posted offer and double auctio n markets are investigated. Previously-observed differences between the se institutions in mean contract prices and in the distribution of producers' and consumers' surpluses under the production to demand condition disappear...