We study multiple-unit, laboratory experimental call markets in which orders are cleared by a single price at a scheduled “call.” The markets are independent trading “days” with two calls each day preceded by a continuous and public order flow. Markets approach the competitive equilibrium over time. The price formation dynamics operate through the flow of bids and asks configured as the “jaws” ...

affecting the economy of independent pharmaciesone can never deny the influence of chain pharmacies as a powerful competitor over the economy of independent pharmacies. in one view, integrating independent pharmacies with low turnover into chain pharmacies can save them; on the other hand, chain pharmacies can lead to more treat for independent pharmacies life.patient costsit is expected to dec...

Competitive electricity markets which rely on centralized dispatch require a mechanism to solicit offers from competing generators. Ideally, such an auction mechanism provides incentives to submit offers equal to the marginal cost of generation for each generator. Economic theory suggests that the Uniform Price auction is an appropriate institution. However, an efficient implementation of this ...

The purpose of this study is to assess how information sharing offices affect loan price and quantity in the African banking industry. The empirical evidence is based on a panel of 162 banks in 42 countries for the period 2001-2011. From the Generalised Method of Moments, public credit registries decrease loan price. With instrumental Quantile Regressions, two main findings are established. Pub...

In this paper, we develop an empirical model of consumer usage and price uncertainty under a threepart tariff plan. Using this model, we study the effects of the recently proposed “Bill Shock” regulation in the mobile phone industry, a proposal that would inform consumers when they use up the monthly allowance of their mobile phone price plan. Using a rich billing dataset, we estimate an indust...

This paper investigates the effects of changes in prices and wages, which may be caused by trade liberalization, on the micro behavior of farmers, in particular, on the use of agrochemicals and parttime farming. I demonstrate that a small decrease in the price of an agricultural product decreases the use of agrochemicals if there are no arable land rental transactions. On the other hand, if a c...

The recent low CO2 prices in the European Union Emission Trading Scheme (EU ETS) have triggered a discussion whether the EU ETS needs to be adjusted. We study the effects of CO2 price floors and a price ceiling on the dynamic investment pathway of two interlinked electricity markets (loosely based on Great Britain, which already has introduced a price floor, and on Central Western Europe). Usin...

This paper studies incumbent price response to entry by low-cost carriers in the U.S. airline industry. I find that legacy carrier incumbents decrease their mean airfare, 10th percentile airfare, and 90th percentile airfare following entry by a low-cost carrier. Airfares decrease by a larger percentage at the right tail of the incumbents’ price distribution than at the left tail, suggesting tha...

In the framework of an incomplete financial market where the stock price dynamics are modeled by a continuous semimartingale, an explicit first-order expansion formula for the power investor’s value function seen as a function of the underlying market price of risk process is provided and its second-order error is quantified. Two specific calibrated numerical examples illustrating the accuracy ...