Abstract
The evaluation of an exchange market is a multi-faceted problem. An important criterion is the ability to achieve allocative efficiency. Gode and Sunder (1993) shows that a continuous double auction for singleunit trades leads to an efficient allocation even when the traders exhibit “zero-intelligence”; in other words, market protocols are active contributors in the search for a better outcome. Under reasonable circumstances, most of the commonly used market protocols share the ability to help traders discover an efficient allocation.
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LiCalzi, M., Pellizzari, P. (2007). Which Market Protocols Facilitate Fair Trading?. In: Consiglio, A. (eds) Artificial Markets Modeling. Lecture Notes in Economics and Mathematical Systems, vol 599. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-73135-1_6
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DOI: https://doi.org/10.1007/978-3-540-73135-1_6
Publisher Name: Springer, Berlin, Heidelberg
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