The experimental evidence from three prominent auction trading institutions: (1) the continuous double auction, (2) the uniform-price sealed bid-offer auction, and (3) the uniform-price double auction (with continuous feedback of real time information on the acceptance status of bids and...

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....

This chapter focuses on the exogenous uncertainty increases the bidask spread in the continuous double auction. These experiments demonstrate that exogenous uncertainty can increase the bidask spread in the continuous double auction. This chapter observes greater mean and median spreads, and a...

Chapter 1. Introduction -- Chapter 2. Rediscovering Classical Economics in the Laboratory -- Chapter 3. Price Formation: Overview of the Theory -- Chapter 4. Price Formation: Partial Equilibrium -- Chapter 5. Price Formation: General Equilibrium -- Chapter 6. Financial Instability: Re-tradable...

Peer-review is a well-established cornerstone of the scientific process, yet it is not immune to status bias. Merton identified the problem as one in which prominent researchers get disproportionately great credit for their contribution while relatively unknown researchers get disproportionately...

Laboratory asset markets provide an experimental setting in which to observe investor behavior. Over more than a decade, numerous studies have found that participants in laboratory experiments frequently drive asset prices far above fundamental value, after which the prices crash. This...