DOI link to open access article:
Convergence of price processes under two dynamic double auctions
Jinpeng Ma, Qiongling Li
Journal of Mechanism and Institution Design
Volume 1, issue 1, pages 1-44 (December 2016)
We study the convergence of two price processes generated by two dynamic double auctions (DA) and provide conditions under which the two price processes converge to a Walrasian equilibrium in the underlying economy. When the conditions are not satisfied, the price processes may result in a bubble or crash.
Keywords: Double auction mechanisms, incremental subgradient methods, network resource allocations.
JEL Classification Numbers: D44, D50.