Does The Option to Cancel an Order in a Double Auction Market Matter?
Posted: 16 Feb 2005
Given the non-standardized use of the cancellation rule in the experimental-markets literature, this paper investigates whether the ability to cancel orders in a double auction matters. We find that players use the option to cancel orders when it is available and that the option to cancel affects volume, but not price-associated variable.
Keywords: experimental markets, double auction, order cancellation
JEL Classification: C90, D40
Suggested Citation: Suggested Citation