Zero-Intelligence Traders in an Oral Double Auction With Replacement
Department of Economics, 3016 Pamplin Hall
Dziepak "at" vt "dot" edu
In Gode & Sunder (1993) it was argued that the efficiency of the oral double auction is attributable to the rationality of the human traders in the experiment. In this short paper, I show, rather, that the efficiency is attributable to the discipline of the institution.
Author's comments: This was an exercise that came out of a reading from Catherine Eckel's graduate Experimental Economics class.