Advanced Search
MyIDEAS: Login to save this paper or follow this series

Price formation in monopolistic markets with endogenous diffusion of trading information: An experimental approach

Contents:

Author Info

Registered author(s):

    Abstract

    This paper reports on price formation in experimental markets in which a single seller trades with four buyers. Transactions occur if either a buyer accepts an offer to sell from the seller, or the seller accepts an offer to buy from a buyer. The dissemination of such offers is endogenous in that the seller determines which buyer(s) should be informed about offers to sell, whereas each buyer may broadcast his offer to buy to any of the residual buyers. Complete dissemination of offers is consistent with conventional double-auction trading rules. The result is two-fold. First, the diffusion of trading information is incomplete, in that neither the single seller nor the buyers inform all market participants about offers. Second, observed prices and the number of transactions are in line with the competitive theoretic benchmark.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ssb.no/a/publikasjoner/pdf/DP/dp336.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 336.

    as in new window
    Length:
    Date of creation: Dec 2002
    Date of revision:
    Handle: RePEc:ssb:dispap:336

    Contact details of provider:
    Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway
    Phone: (+47) 21 09 00 00
    Fax: (+47) 21 09 49 73
    Email:
    Web page: http://www.ssb.no/en/
    More information through EDIRC

    Related research

    Keywords: Experimental economics; market structure; trading information;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Smith, Vernon L, 1982. "Microeconomic Systems as an Experimental Science," American Economic Review, American Economic Association, vol. 72(5), pages 923-55, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:336. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (J Bruusgaard).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.