Asymmetric Information and International Tradable Quota Treaties. An experimental evaluation

This paper reports an experimental test of international quota trading on a market characterised by several dominant traders. Asymmetric information regarding quota demand and supply imply true market-clearing prices which differ from an expected competitive quota price. However, in the experiment the expected price level emerges as a focal point on which the bulk of quota trade contracts are keyed. Thus, incomplete price discovery obtains.

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Year of publication:	1999-02
Authors:	Søberg, Morten
Institutions:	Statistisk Sentralbyrå, Government of Norway
Subject:	Asymmetric information \| tradable quotas \| experimental Economics

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Extent:	application/pdf
Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Classification:	D82 - Asymmetric and Private Information ; Q25 - Water ; C90 - Design of Experiments. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004980948