Physical Sciences and Mathematics Commons^™

Convergence To Equilibrium In Experimental Markets, Carolyn A. Galantine Cpa., Phd, Charles W. Swenson

Carolyn A Galantine CPA., PhD

The process by which market prices achieve equilibrium is an important topic, as the price formation process is fundamental to applied economic theory. Recently, economists have been applying complex mathematical functions to study the course of market prices convergence to equilibrium. Studies have made progress in modeling the price convergence process in at least one type of experimental market setting, the double auction. The double auction is of interest not only because of its prevalence in many types of real-world markets (e.g., the New York Stock Exchange), but also because of its extensive use in experimental economics. The double auction …