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The Call Market: Historical Artifact or Market Architecture of the Future

  • Jan Kregel
Part of the The New York University Salomon Center Series on Financial Markets and Institutions book series (SALO, volume 7)

Abstract

Free markets are usually considered as synonymous with perfect competition. It is the market which provides the dissemination of information concerning the prices at which buyers and sellers are willing to trade, the amounts they will trade and their geographical location; all are necessary to the price uniformity of homogeneous commodities associated with competitive markets. However, the assumption of perfect knowledge of the prices and offers of all market participants, as well as their physical location, often used to express the result of perfectly competitive prices, obscures a number of implicit assumptions about the form and operation of markets and diverts attention from the way markets provide and transmit information to market participants. Critical attention has thus been focused on the assumption of perfect knowledge, rather than on whether or not it is plausible for market forms to exist which might satisfy the information requirements of perfect competition. The question of market organization is not an abstract, philosophical question concerning the uncertainty of future action, rather it involves the study of past and present institutional structures used by economic agents to organize market exchange. It deals with the extent to which organizational form can substitute for the undisputed fact that perfect knowledge does not exist.

Keywords

Equilibrium Price Perfect Information Market Maker Perfect Knowledge Market Organization 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York. Boston 2001

Authors and Affiliations

  • Jan Kregel
    • 1
    • 2
  1. 1.University of BolognaItaly
  2. 2.High Level Expert in International Finance New York Office of the United Nations Conference on Trade and DevelopmentUSA

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