Daniel Kahneman and Vernon Smith were the joint recipients of the 2002 Nobel Prize in
Economics. Kahneman's work challenges the assumption that individuals behave in a …

The double auction trading institution (DA) has been highly efficient across diverse marginal-
cost market structures, whether human subjects or" zero-intelligence" robots populated …

We report results from fifteen computerized double auctions with concurrent trading of two
commodities. In contrast to prior experimental markets, buyers' demands are induced via …

Many industries with avoidable fixed costs face competitive price instability problems in an
attempt to maintain profitability. We designed an experimental environment where …

Vernon Smith shared the Nobel Prize in 2002 with Daniel Kahneman. This article surveys
Smith's contributions to economics. His early efforts led to greater understanding of markets …

Nonconvexities undermine the efficiency of the usually robust “double auction” or DA market
institution. We experimentally examine two modified DAs that allow for particularly rich …

Publisher Summary Relatively simple, avoidable cost structures can undermine the trading
efficiency of otherwise efficient competitive market institutions. The continuous double …

Bidders often face avoidable fixed costs or other synergies that can make bidding decisions
complex and risky, and market outcomes volatile. If bidders deviate from risk neutral best …

Bidders in procurement auctions often face avoidable fixed costs. This can make bidding
decisions complex and risky, and market outcomes volatile. If bidders deviate from risk …

Abstract A Payment Cost Minimization auction has been proposed as an alternative to the
Offer Cost Minimization auction for use in wholesale electric power markets with an intention …