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PDF
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Type:
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Working Paper |
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Author:
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Hoffman, Elizabeth; Plott, Charles R. |
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Date:
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1978 |
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Agency:
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Division of the Humanities and Social Sciences, California Institute of Technology, Pasadena, CA |
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Series:
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Social Science Working Paper, no. 241 |
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URI:
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https://hdl.handle.net/10535/5734
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Sector:
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Social Organization |
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Region:
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Subject(s):
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auctions
economic theory
markets--models
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Abstract:
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"Laboratory experimental research has demonstrated that the posted price market institution operates in simple markets to induce inefficiencies, price 'distortions,' and an income distribution which works to the disadvantage of those who face posted prices. This discovery seems to be of considerable importance when viewed along with numerous examples of social policy which call for the establishment of posted prices as opposed to other modes of market organization . If indeed such effects of the posted price institution are found to persist in a variety of market environments some wide ranging policy
reappraisals are in order. This paper extends the investigation of the posted price institution to intertemporal markets in which trading
speculators exist."
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