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Experimental Auction Markets and the Walrasian Hypothesis

Vernon L. Smith

Krannert Graduate School of Industrial Administration, Purdue University

Journal of Political Economy 1965

This study reports on a block of experimental market sessions designed primarily to provide (1) the severest test yet attempted of the equilibrating forces operating in competitive auction markets and (2) a more rigorously controlled test of the Walrasian hypothesis. Some data are also supplied which show the effect of cash payoffs on the equilibrating behavior of such markets; in particular, the effect of full cash payoffs to all successful trading subjects as against payoffs to a subset of such subjects chosen at random.

DOI
10.1086/259041
Volume
73 (4)
Pages
387-393
Language
en
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