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prices and highest realized gains from trade. Our experiment provides new evidence, from markets with very asymmetrically …
Persistent link: https://www.econbiz.de/10012437539
We report on experimental markets for a contingent claim asset that eight subjects traded for nine periods before the state was revealed. There is an informative binary signal that arrives after each of the first eight trading rounds. In our baseline treatment the realization of the signal is...
Persistent link: https://www.econbiz.de/10013126895
report on a computational experiment with markets populated by algorithmic traders who follow cognitively simple heuristics …
Persistent link: https://www.econbiz.de/10012868557
Reverse auctions are considered a fast and inexpensive price discovery tool to award procurement contracts and it is often desirable to award contracts to more than one supplier. We propose a new procurement procedure that is based on a reverse auction. Shares are allocated endogenously,...
Persistent link: https://www.econbiz.de/10011448760
We explain how the common practice of size-discovery trade detracts from overallfinancial market efficiency. At each of a series of size-discovery sessions, traders report theirdesired trades, generating allocations of the asset and cash that rely on the most recent exchangeprice. Traders can...
Persistent link: https://www.econbiz.de/10012244479
We study the efficiency of standard auctions with interdependent values in which one of two bidders is perfectly informed of his value while the other is partially informed. The second-price auction, as well as English auction, has a unique ex-post equilibrium that yields efficient allocation....
Persistent link: https://www.econbiz.de/10012990803
elicited data. As an illustration, the methodology is applied to a double auction experiment, where traders' beliefs about the …
Persistent link: https://www.econbiz.de/10014171499
We investigate the formation of market prices in a new experimental setting involving multi-period call-auction asset markets with state-dependent fundamentals. We are particularly interested in two informational aspects: (1) the role of traders who are informed about the true state and/or (2)...
Persistent link: https://www.econbiz.de/10013053112
We investigate the formation of market prices in a new experimental setting involving multi-period call-auction asset markets with state-dependent fundamentals. We are particularly interested in two informational aspects: (1) the role of traders who are informed about the true state and/or (2)...
Persistent link: https://www.econbiz.de/10010353591
We investigate the formation of market prices in a new experimental setting involving multi-period call-auction asset markets with state-dependent fundamentals. We are particularly interested in two informational aspects: (1) the role of traders who are informed about the true state and/or (2)...
Persistent link: https://www.econbiz.de/10010429127