Journal article
Evolution, efficiency and noise traders in a one-sided auction market
Abstract
Natural selection is used to examine a one-sided buyer auction market. With each trader's behavior preprogrammed with its own inherent and fixed probabilities of overpredicting, predicting correctly and underpredicting the fundamental value of the asset, informational efficiency occurs. If each buyer's initial wealth is sufficiently small relative to the market supply and if the variation in the asset's random shock is sufficiently small, then …
Authors
Luo GY
Journal
Journal of Financial Markets, Vol. 6, No. 2, pp. 163–197
Publisher
Elsevier
Publication Date
4 2003
DOI
10.1016/s1386-4181(01)00033-7
ISSN
1386-4181