What Makes Markets Allocationally Efficient? Export

@article{citeulike:134339, abstract = {What determines the allocative efficiency of markets? Why are double auctions, even with untrained human traders, allocationally efficient? We provide a simple explanation for these complex phenomena by showing how externally observable rules that define a market cause high allocative efficiency when individuals remain within the confines of these rules. We also show how the oft-ignored shape of extramarginal demand and supply affects efficiency by influencing the inverse relationship between the magnitude of efficiency loss and its probability.}, author = {Gode, Dhananjay K. and Sunder, Shyam}, citeulike-article-id = {134339}, citeulike-linkout-0 = {http://www.jstor.org/stable/2951247}, journal = {The Quarterly Journal of Economics}, keywords = {4, bounded, distributed, economics, efficiency}, number = {2}, pages = {603--630}, posted-at = {2007-06-01 04:08:54}, priority = {0}, title = {What Makes Markets Allocationally Efficient?}, url = {http://www.jstor.org/stable/2951247}, volume = {112}, year = {1997} }

TY - JOUR ID - citeulike:134339 L3 - citeulike-article-id:134339 N2 - What determines the allocative efficiency of markets? Why are double auctions, even with untrained human traders, allocationally efficient? We provide a simple explanation for these complex phenomena by showing how externally observable rules that define a market cause high allocative efficiency when individuals remain within the confines of these rules. We also show how the oft-ignored shape of extramarginal demand and supply affects efficiency by influencing the inverse relationship between the magnitude of efficiency loss and its probability. IS - 2 JF - The Quarterly Journal of Economics EP - 630 TI - What Makes Markets Allocationally Efficient? VL - 112 SP - 603 KW - 4 KW - bounded KW - distributed KW - economics KW - efficiency AU - Gode, Dhananjay AU - Sunder, Shyam PY - 1997/// UR - http://www.jstor.org/stable/2951247 ER -