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Unpublished Paper
Experimental Markets and Chamberlin's Excess Trading Conjecture
Department of Economics, UCSB (2004)
  • Ted Bergstrom, University of California, Santa Barbara
Abstract

Edward Chamberlin conjectured that the number of trades in realistic trading systems is likely to exceed that predicted by competitive equilibrium theory. He supported this conjecture by data from a large number of classroom experiments and with a plausible argument based on a numerical example. This paper states and proves a theorem that supports and illuminates Chamberlin's intuition, supplies examples of trading processes that lead to excess trading, and presents some additional experimental evidence.

Keywords
  • experimental economics,
  • classroom experiments,
  • excess trading,
  • competitive equilibrium
Disciplines
Publication Date
July 5, 2004
Citation Information
Ted Bergstrom. "Experimental Markets and Chamberlin's Excess Trading Conjecture" Department of Economics, UCSB (2004)
Available at: http://works.bepress.com/ted_bergstrom/13/