Download This PaperDouble Auctions and Walrasian Equilibrium
University of Zurich, Department of Economics, Working Paper No. 404
28 Pages Posted: 2 Apr 2022 Last revised: 21 Mar 2023
Date Written: February 11, 2022
Abstract
We define a double auction mechanism, treating in a unified way finite and infinite markets, allowing for ties in reported values, and not imposing any regularity assumptions. It is the first such definition. In all markets, our Double Auction implements market clearing and a
Walrasian equilibrium. In finite markets our Double Auction nests as special cases the standard k-Double Auction and in infinite markets the textbook model of continuous and strictly monotone demand and supply. Finally, we establish the convergence of finite to infinite Double Auctions.
Keywords: Double Auction, Market Clearing, Walrasian Equilibrium, Finite and Infinite Markets, Convergence
JEL Classification: D44, D47, D50
Suggested Citation: Suggested Citation