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Does Learning Lead to Coordination in Market Clearing Institutions?

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Abstract

This paper analyzes the question of whether traders learn to coordinate on a trading institution that guarantees market clearing, or whether other market institutions can survive in the long run. While we find that the market clearing institution is indeed always stable under a general class of learning dynamics, it turns out that also other, non-market clearing institutions are stable. Hence, in the long run traders may fail to coordinate exclusively in market clearing institutions.

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File URL: http://homepage.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie0319.pdf
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0319.

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Date of creation: Dec 2003
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Handle: RePEc:vie:viennp:0319

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Web page: http://www.univie.ac.at/vwl

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Cited by:
  1. Carlos Alós-Ferrer & Georg Kirchsteiger & Markus Walzl, 2010. "On the Evolution of Market Institutions: The Platform Design Paradox," ULB Institutional Repository 2013/149586, ULB -- Universite Libre de Bruxelles.
  2. Carlos Alós-Ferrer & Georg Kirchsteiger, 2010. "General Equilibrium and the Emergence of (Non) Market Clearing Trading Institutions," ULB Institutional Repository 2013/149592, ULB -- Universite Libre de Bruxelles.
  3. Jordi Brandts & Arthur Schram & Klarita Gërxhani, 2007. "Information Networks and Worker Recruitment," UFAE and IAE Working Papers 707.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Anke Gerber & Marc Oliver Bettzüge, . "Evolutionary Choice of Markets," IEW - Working Papers 109, Institute for Empirical Research in Economics - University of Zurich.
  5. Schram, Arthur & Brandts, Jordi & Gërxhani, Klarita, 2010. "Information, bilateral negotiations, and worker recruitment," European Economic Review, Elsevier, vol. 54(8), pages 1035-1058, November.

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