Which market protocols facilitate fair trading?
AbstractWe study the performance of four market protocols with regard to their ability to equitably distribute the gains from trade among two groups of participants in an exchange economy. We test the protocols by running (computerized) experiments. Assuming Walrasian tatonemment as benchmark, there is a clear-cut ranking from best to worst: batch auction, nondiscretionary dealership, the hybridization of a dealership and a continuous double auction, and finally the pure continuous double auction.
Download InfoIf 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.
Bibliographic InfoPaper provided by Department of Applied Mathematics, Università Ca' Foscari Venezia in its series Working Papers with number 151.
Length: 18 pages
Date of creation: May 2007
Date of revision:
Publication status: Published in A. Consiglio (ed.), Artificial Markets Modeling, Springer, 2007, 81-97
allocative efficiency; allocative fairness; allocative neutrality; comparison of market institutions; market microstructure; performance criteria.;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D69 - Microeconomics - - Welfare Economics - - - Other
- G19 - Financial Economics - - General Financial Markets - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-02 (All new papers)
- NEP-CMP-2007-06-02 (Computational Economics)
- NEP-MST-2007-06-02 (Market Microstructure)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Marco LiCalzi & Paolo Pellizzari, 2008. "Zero-Intelligence Trading without Resampling," Working Papers, Department of Applied Mathematics, UniversitÃ Ca' Foscari Venezia 164, Department of Applied Mathematics, Università Ca' Foscari Venezia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marco LiCalzi).
If references are entirely missing, you can add them using this form.