Which Market Protocols Facilitate Fair Trading?

  • Marco LiCalzi
  • Paolo Pellizzari
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 599)


The evaluation of an exchange market is a multi-faceted problem. An important criterion is the ability to achieve allocative efficiency. Gode and Sunder (1993) shows that a continuous double auction for singleunit trades leads to an efficient allocation even when the traders exhibit “zero-intelligence”; in other words, market protocols are active contributors in the search for a better outcome. Under reasonable circumstances, most of the commonly used market protocols share the ability to help traders discover an efficient allocation.


Fair Trading Equilibrium Price Fair Share Initial Endowment Certainty Equivalent 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2007

Authors and Affiliations

  • Marco LiCalzi
    • 1
  • Paolo Pellizzari
    • 1
  1. 1.Dept. Applied Mathematics and SSAVU. of VeniceItaly

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