Lecture 13 Double Oral Auction

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Lecture 13 - Double Oral Auction

• Wissinks Words

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remarks

• Demonstration market is fun!
• Traders are buying and selling an unnamed
  commodity with marginal benefits and marginal
  costs given on trading sheets.
• BUYERS call out bids to purchase and SELLERS
  call out asks to sell.
• Any BUYER may accept the latest ask.
• Any SELLER may accept the latest bid.
• Once a trade is made, new bids and asks are
  accepted.

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why do an experiment?

• To Illustrate how markets work.
• To show how equilibrium prices come about.
• To show how well the market works, how close the
  market is to our theoretical predictions.
• Its fun instructive and entertaining