P-I: Experiment 2: ()

Figure below demonstrate the experiment results of the study conducted by Ketcham, Smith and Williams (1984), whichsummarizes the differences between prices and quantities observed in double-auction and posted offer markets averaged over the 12 experimental markets of the study.

a)Interpret the results of the study and compare the findings derived from lab experiments on double-auction and posted offer markets.

0.3 Double 0.25 auction Posted 0.2 oller Amount above equilibrium price 0.15 0.1 0.05 6 5 4 -3 -2 -1 2 3 Amount above or below equilibrium quantity