Experimental Economics and Chamberlin's Excess Trading Conjecture
AbstractEdward Chamberlin conjectured that the number of trades in realistic trading systems is likely to exceed that predicted by competitive equilibrium theory. He supported this conjecture by data from a large number of classroom experiments and with a plausible argument based on a numerical example. This paper states and proves a theorem that supports and illuminates Chamberlin's intuition, supplies examples of trading processes that lead to excess trading, and presents some additional experimental evidence.
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Bibliographic InfoPaper provided by EconWPA in its series Experimental with number 0407001.
Length: 10 pages
Date of creation: 06 Jul 2004
Date of revision:
Note: Type of Document - pdf; pages: 10
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experimental economics; classroom experiments; excess trading;
Find related papers by JEL classification:
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-07-11 (All new papers)
- NEP-EVO-2004-07-11 (Evolutionary Economics)
- NEP-EXP-2004-07-11 (Experimental Economics)
- NEP-HPE-2004-07-11 (History & Philosophy of Economics)
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.:
- Ted Bergstrom, 2004.
"Extracting Valuable Data from Classroom Trading Pits,"
- Theodore C. Bergstrom & Eugene Kwok, 2005. "Extracting Valuable Data from Classroom Trading Pits," Journal of Economic Education, Taylor and Francis Journals, vol. 36(3), pages 220-235, July.
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