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Theories of price formation and exchange in double oral auctions

Easley, David and Ledyard, John O. (1993) Theories of price formation and exchange in double oral auctions. In: The Double Auction Market: Institutions, Theories, and Evidence. SFI Studies in the Sciences of Complexity, Proceedings. No.14. Addison-Wesley , Boston, pp. 63-97. ISBN 0201624591.

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We provide a theory to explain the data generated by experiments with double oral auctions. Our theory predicts convergence to the equilibrium implied by the law of demand and supply and provides an explanation of disequilibrium behavior. The predictions of our theory seem to fit the data better than do the predictions of Walrasian, Marshallian, or game theoretic models. Our theory also suggests that, in demand-supply environments, the double oral auction is remarkably robust in the sense that aggregate performance is similar for a very wide range of individual behaviors.

Item Type:Book Section
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Additional Information:© Addison-Wesley 1993. Formerly SSWP 611.
Series Name:SFI Studies in the Sciences of Complexity, Proceedings
Issue or Number:14
Record Number:CaltechAUTHORS:20171110-151818390
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:83133
Deposited By: Jacquelyn Bussone
Deposited On:16 Nov 2017 00:34
Last Modified:03 Oct 2019 19:02

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