Posted Offer Markets in Near-Continuous Time: An Experimental Investigation.

This paper reports an experiment conducted to evaluate a “near-continuous” variant of the posted offer trading institution, where the number of periods in a market session is increased by reducing sharply each period's maximum length. Experimental results suggest that although decisions in time-trun...

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Publicado en:Economic Inquiry Vol. 47; no. 3; pp. 449 - 467
Autores principales: Davis, Douglas D., Korenok, Oleg
Formato: Artículo
Publicado: Wiley-Blackwell July 2009
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Posted Offer Markets in Near-Continuous Time: An Experimental Investigation.
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          Davis, Douglas D.
          Korenok, Oleg
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        Experimental economics
        Mathematical models of pricing
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          Experimental economics
          Mathematical models of pricing
      ab: This paper reports an experiment conducted to evaluate a “near-continuous” variant of the posted offer trading institution, where the number of periods in a market session is increased by reducing sharply each period's maximum length. Experimental results suggest that although decisions in time-truncated periods are not equivalent to periods of longer duration, extensive repetition improves considerably the drawing power of equilibrium predictions in some challenging environments. Nevertheless, significant deviations remain in the near-continuous framework. We also observe that the extra data collected in the near-continuous framework allow new insights into price convergence and signaling. (JEL C92, L12, L11) Reprinted by permission of the publisher.
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    language: English
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