We develop and test a model that provides a unified account of the neural processes underlying behavior in a classical economic choice task. The model describes in a stylized way brain processes engaged in evaluating information provided by the experimental stimuli, and produces a consistent...

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...

This chapter compare hypothetical with actual bids of a Treasury bill dealer, and find that the dealer's measure of constant relative risk aversion using actual bid data is four times larger than under hypothetical assessment. This chapter also reports individual decision making experiments in...

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 chapter summarizes results from various experiments that uses a complex 9-node network market with parameters supplied by the electric utility industry. In the experiments conducted, the chapter uses a DC model with quadratic line losses to compute the real power flows in the aggregated...

This chapter summarizes a market mechanism for a combinatorial sealed-bid auction that was motivated by the airport slot problem under which bidders would submit bids for packages of slots that support their schedules. Under this scheme, the elemental resources would be allocated only in the...

This chapter reports the results of laboratory asset markets in which each trader receives an initial portfolio of cash and shares of a security with an earnings life of 15 trading periods. Each trader is free to trade shares of the security using double auction trading rules. At the end of the...

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...

Individuals and organizations if rational and self-interested will equalize the marginal returns of two ways of generating income: (1) production and exchange, versus (2) appropriative efforts for capturing resources previously controlled by other parties (or to defend against appropriation by...