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Download the Paper (246 K, PDF file) - July 5, 2004 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing.

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.

SUGGESTED CITATION:
Ted Bergstrom, "Experimental Markets and Chamberlin's Excess Trading Conjecture" (July 5, 2004). Department of Economics, UCSB. Ted Bergstrom. Paper 2004D.
http://repositories.cdlib.org/ucsbecon/bergstrom/2004D