| Author: | McCabe, K. A. Rassenti, S. J. Smith, V. L. |
| Title: | Designing call auction institutions: Is Double Dutch the best? |
| Journal: | Economic Journal
1992 : JAN, VOL. 102:410, p.9-23 |
| Index terms: | STOCK EXCHANGES STOCK MARKETS FINANCIAL INSTITUTIONS COMMUNICATION |
| Language: | eng |
| Abstract: | A method is presented in the institutional design of "call markets" using experimental laboratory as a test bed. The comparative performance of three new institutions for exchange is evaluated when all trades are executed simultaneously at a uniform price. Call markets have been used on many European and Israeli Stock Exchanges, and for the daily opening on the New York, American and Tokyo Stock Exchanges in all outstanding listed issues. In some versions the bids are verbal, others are written. Three potential new exchange mechanisms are examined: Double Dutch (generalization of Dutch Auction), Double English (generalization of the English Auction) and Dutch English (a single clock: a Dutch one to buyers and an English one to sellers). |
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