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Experimental Examination of a Thin Market: Price Behavior in a Declining Terminal Market Revisited

Published online by Cambridge University Press:  28 April 2015

Robert G. Nelson  and
Steven C. Turner
Robert G. Nelson
Affiliation:
Department of Agricultural Economics and Rural Sociology, Auburn University
Steven C. Turner
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia
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Abstract

Perceived characteristics of thin markets are described and approaches to furthering their study are suggested. Design features of a laboratory thin market, patterned after a typical livestock marketing situation, are described. Price bias and variation from a “thick” private negotiation market with 22 traders is compared to that from a “thin” auction market with 8 traders. No systematic price bias was found in any of the markets. Price variation was actually lower in the thin auction market.

Keywords

auctionexperimental economicsprice discoverythin market
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 1 , July 1995 , pp. 149 - 160
Copyright
Copyright © Southern Agricultural Economics Association 1995

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