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...

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...