An Experimental Examination of the Walrasian Tatonnement Mechanism
Kevin McCabe (),
Stephen Rassenti and
RAND Journal of Economics, 1996, vol. 27, issue 4, pages 681-699
This is a systematic experimental comparison of the efficiency and competitive properties of a computerized multiunit tatonnement with or without a dynamic improvement rule, with or without publicity of order flow information. All versions of the tatonnement are comparatively less efficient than the continuous double auction. The tatonnement yields competitive prices, but both sides tend to underreveal demand/supply, causing inefficiency. Only the full-information, no-improvement-rule version of the tatonnement procedure approaches the efficiency of the double auction.
References: Add references at CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://links.jstor.org/sici?sici=0741-6261%2819962 ... O%3B2-Q&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
Working Paper: An Experimental Examination of the Walrasian Tatonnement Mechanism (1992)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:rje:randje:v:27:y:1996:i:winter:p:681-699
Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi
Access Statistics for this article
RAND Journal of Economics is currently edited by Winter
More articles in RAND Journal of Economics from The RAND Corporation
Series data maintained by ().