We modify W. Vickrey's (1961, J. Finance 16, 8 37) mechanism for call markets by introducing the participation stage and study the efficiency properties of the modified mechanism. We provide sufficient conditions under which the modified Vickrey double auction achieves full efficiency. In addition, we prove that the modified Vickrey double auction achieves asymptotic efficiency even when full e...

This paper reports the results of a series of oral double auction experiments in which some traders possess market power. A market is set up in which the configuration of supply and demand curves leads to an asymmetry between buyers and sellers in their abilities to influence transactions prices. This market structure does not always lead to convergence to the competitive price despite the comp...

In this paper we explore how specific aspects of mechanism design affect the efficiency of the market outcome. In particular, we are interested whether the availability of information about actions of other participants improves market efficiency. We consider a simple market of a homogeneous good populated by buyers and sellers. The valuations of the buyers and the costs of the sellers are give...

MANY MARKET SETTINGS are approximated by a double auction. Standard examples are the London gold market and the order books maintained by New York Stock Exchange specialists. These auctions typically have many traders on each side of the market. More importantly, large double auctions are an excellent model for microfoundations of price formation in competitive markets. Like a competitive marke...

Typical Double Auction (DA) models assume that trading agents are one-way traders. With this limitation, they cannot directly reflect the fact individual traders in financial markets (the most popular application of double auction) choose their trading directions dynamically. To address this issue, we introduce the Bi-directional Double Auction (BDA) market which is populated by two-way traders...

This chapter explores the minimal intelligence conditions for traders in a general double auction market with speculation activities. Using an agent-based model, it is shown that when traders and speculators play together under general market curve settings, zero-intelligent plus (ZIP) is still a sufficient condition for market prices to converge to the equilibrium. At the same time, market eff...

The word Cloud has been a buzzword since last few years but there is been lot of confusion happening in the cloud market with respect to selection of cloud provider at the cheapest prize and achieving the highest resource efficiency for the cloud providers. Its always a difficult decision when a customer has to select a Cloud service provider because there are no established guidelines to help ...