Convergence of Double Auctions to Pareto Optimal Allocations in the Edgeworth Box

Double auctions with profit-motivated human traders as well as "zero-intelligence" programmed traders have previously been shown to converge to Pareto optimal allocations in partial equilibrium settings. We show that these results remain robust in two-good general equilibrium settings and elucidate how market structure, not optimization by traders, guides efficient resource allocation.

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Year of publication:	2004-06-01
Authors:	K., Dhananjay ; Sunder, Shyam ; Spear, Stephen
Institutions:	School of Management, Yale University
Subject:	Pareto optimal allocations \| Edgeworth Box \| Double auction \| Zero-intelligence traders

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Extent:	application/pdf
Series:	Yale School of Management Working Papers.
Type of publication:	Book / Working Paper
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10008854013