This chapter focuses on the geometry of how a market can solve systems of equations from market jaws to the newton method. Since market equilibrium can be interpreted as a solution to a system of equations, price discovery, as it called in the language of market makers, can be viewed as having...

This study tests the rationality of the decisions to purchase information, the informational efficiency of prices, and the optimality of the resulting allocations with a series of laboratory experiments in decentralized markets. The theory predicts that markets with dispersed information and...