This chapter documents some open-book call asset markets that have a very large number of traders relative to traditional laboratory markets. The markets were conducted as out-of-class fully computerized extra-credit exercises in microeconomic theory classes at Indiana University. Students could...

This chapter focuses on the effect of non- binding price controls in double auction trading.Static price theory predicts that non-binding price ceilings and floors will have no effect on price determination in double auction markets. In fact they have substantial effects on price dynamics....

Even when markets seem to alternate between collusive and non-collusive phases, the price differences are difficult to interpret since a breakdown in collusion may be caused by a demand decrease that would have reduced prices in any case. This makes the laboratory an ideal setting to study...

Many aspects of antitrust policy are influenced by the possibility that sellers in concentrated markets may have the power to raise prices above competitive levels. Of course, anyone can raise prices, so the issue is whether a change in structure, e.g., a merger, will allow one or more sellers...

Market power arises in many posted-offer markets and drives a distinction between the competitive prediction and the Nash equilibrium for the market viewed as a stage game. Pricing patterns in such markets tend to be characterized by Edgeworth cycles that deteriorate as the sessions progress....