causal
Switching Buyer/Seller Roles Drives Price Instability
In markets where participants can switch between being a buyer or a seller depending on price (like stock or housing markets), prices become unstable and erratic, unlike role-specialized markets such as haircuts where one is always a buyer.
causalpending
Speaker
Vernon SmithEvidence Quote
“depending upon the price, you may switch from being a buyer to a seller. And that accounts for a lot of the problems. What we observe is a lot of instability and erratic behavior of prices.”
Created: 6/13/2026, 12:22:45 AM
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