Price Expectations and International Quota Trading: An Experimental Evaluation

Morten Søberg ()

Environmental & Resource Economics, 2000, vol. 17, issue 3, 259-277

Abstract: This paper reports a preliminary experimental test of international quota trading on a market characterized by several dominant traders. Uncertain quota demand and supply imply true market-clearing prices that in general differ from an expected competitive quota price. However, in the experiment the expected price level emerges as a focal point on which the bulk of quota trade contracts are keyed. Thus, incomplete price discovery occurs. Copyright Kluwer Academic Publishers 2000

Keywords: experimental economics; tradable quotas (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (3)

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DOI: 10.1023/A:1026457110029

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