Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192231 
Authors: 
Year of Publication: 
1999
Series/Report no.: 
Discussion Papers No. 248
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper reports an experimental test of international quota trading on a market characterised by several dominant traders. Asymmetric information regarding quota demand and supply imply true market-clearing prices which differ from an expected competitive quota price. However, in the experiment the expected price level emerges as a focal point on which the bulk of quota trade contracts are keyed. Thus, incomplete price discovery obtains.
Subjects: 
Asymmetric information
tradable quotas
experimental Economics.
JEL: 
D82
Q25
C90
Document Type: 
Working Paper

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