Posted - Offer Markets In Near Continuous Time: an Experimental Investigation
This paper reports an experiment conducted to evaluate a ‘near continuous’ variant of the posted-offer trading institution, where the number of periods in a market session is increased by reducing sharply each period’s maximum length. Experimental results suggest that although decisions in time-truncated periods are not equivalent to periods of longer duration, extensive repetition improves considerably the drawing power of equilibrium predictions in some challenging environments. Nevertheless, significant deviations remain in the near continuous framework. We also observe that the extra data collected in the near continuous framework allows new insights into price convergence and price signaling.
|Date of creation:||Nov 2005|
|Date of revision:||2007|
|Publication status:||Forthcoming in Economic Inquiry|
|Contact details of provider:|| Postal: |
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