Posted - Offer Markets In Near Continuous Time: an Experimental Investigation

Douglas Davis and Oleg Korenok

No 504, Working Papers from VCU School of Business, Department of Economics

Abstract: 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.

Keywords: experiment; monopoly; pricing; price signaling (search for similar items in EconPapers)
JEL-codes: C92 L11 L12 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2005-11, Revised 2007
New Economics Papers: this item is included in nep-exp and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Forthcoming in Economic Inquiry

Downloads: (external link)
http://www.people.vcu.edu/%7Edddavis/papers/MS8733_FINAL.pdf Final version, 2007 (application/pdf)

Related works:
Journal Article: POSTED OFFER MARKETS IN NEAR‐CONTINUOUS TIME: AN EXPERIMENTAL INVESTIGATION (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:vcu:wpaper:0504

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