The Walrasian tatonnement Mechanism and Information

Financial market design and bounded rationality: An experiment

“…Two previous studies by Joyce (1984) and Bronfman et al (1996) deal with the Walrasian Tatonnement. These papers use a private value environment and study the performance of this trading mechanism in achieving the competitive equilibrium.…”

Multi-Period Combinatorial Auction Mechanism for Distributed Resource Allocation and Scheduling

“…In these studies, the price adjustment process was based on tatonnement process which was originally proposed by Walras (1954) and improved by many other studies (e.g. Joyce (1984), Cheng and Wellman (1998)). The tatonnement process resolves resource conflicts by updating the price based on excess demand iteratively.…”

“…Fisher (1985) proposed price adjustment process based on subgradient search method. Joyce (1984) set the step parameter based on the level of difference between demand and supply. He set higher value on step parameter when the difference between demand and supply is large and vice versa.…”

“…In contrast, adaptive tatonnement means that larger price adjustment is permitted in early iterations to allow quick move to promising region, and as the step size diminishes, the auctioneer could fine-tune the prices to find the equilibrium. More involved discussion on the price adjustment can be seen in [Fisher 1985, Joyce 1984.…”

Vernon Smith's Insomnia and the Dawn of Economics as Experimental Science

“…But the actual performance of this mechanism in simple functioning markets has not been well understood. The first laboratory experiments investigating the performance of the tâ atonnement mechanism were conducted by Patrick Joyce (1984), who found Walrasian tâ atonnement to perform very well in a stationary market where each buyer and seller could trade at most one unit. Smith (2000b) compared the performance of the Walrasian mechanism in a more challenging market environment than that considered by Joyce.…”