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Convergence of price processes under two dynamic double auctions

Author

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  • Jinpeng Ma

    (Rutgers University, USA)

  • Qiongling Li

    (Rice University, USA)

Abstract

We study the convergence of two price processes generated by two dynamic double auctions (DA) and provide conditions under which the two price processes converge to a Walrasian equilibrium in the underlying economy. When the conditions are not satisfied, the price processes may result in a bubble or crash.

Suggested Citation

  • Jinpeng Ma & Qiongling Li, 2016. "Convergence of price processes under two dynamic double auctions," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 1(1), pages 1-44, December.
    • Handle: RePEc:jmi:articl:jmi-v1i1a1
    DOI: 10.22574/jmid.2016.12.001
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    References listed on IDEAS

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    Cited by:

    1. Satoru Fujishige & Zaifu Yang, 2017. "On a spontaneous decentralized market process," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 2(1), pages 1-37, December.
    2. Xiaojing Xu & Jinpeng Ma & Xiaoping Xie, 2019. "Price Convergence under a Probabilistic Double Auction," Computational Economics, Springer;Society for Computational Economics, vol. 54(3), pages 1113-1155, October.

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    More about this item

    Keywords

    Double auction mechanisms; incremental subgradient methods; network resource allocations.;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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