25 Pages Posted: 4 Jun 2003
Date Written: May 2003
We introduce and justify a taxonomy for the structure of markets and minimal institutions which appear in constructing minimally complex trading structures to perform the functions of price formation, settlement and payments. Each structure is presented as a playable strategic market game and is examined for its efficiency, the number of degrees of freedom and the symmetry properties of the structure.
Keywords: Strategic Market Games, Clearinghouses, Credit Evaluation, Default
JEL Classification: C7, G10, G20, L10, D40, D50
Suggested Citation: Suggested Citation
Shubik, Martin and Smith, Eric, Structure, Clearinghouses and Symmetry (May 2003). Cowles Foundation Discussion Paper No. 1419. Available at SSRN: https://ssrn.com/abstract=412493