research

Marshallian VS. Walrasian Stability in an Experimental Market

Abstract

Twelve markets were studied. All markets had downward sloping supply functions created by Marshallian-type external economics. The conditions were such that the Marshallian theory of dynamics gave predictions opposite to the Walrasian theory of dynamics. The market organizations studied were double auction, sealed bid/offer and (secant) tâtonnement. In all cases the Marshallian theory of dynamics was the better model

    Similar works