Experimental Economics and Chamberlin's Excess Trading Conjecture

Ted Bergstrom ()

Experimental from EconWPA

Abstract: Edward 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.

Keywords: experimental economics; classroom experiments; excess trading (search for similar items in EconPapers)
JEL-codes: C9 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-evo, nep-exp and nep-hpe
Date: 2004-07-06
Note: Type of Document - pdf; pages: 10
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpex:0407001

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