factual
Supply-Demand Convergence With Few Participants
Contrary to the belief that competitive convergence requires complete information and a large 'sea' of buyers and sellers, experimental supply-and-demand markets converge to competitive equilibrium easily even with very small numbers of participants.
factualpending
Speaker
Vernon SmithEvidence Quote
“here I was doing experiments with 15, 20, 25 people; and we were getting convergence easily. And then I did them with smaller numbers, and those supply-and-demand markets worked really well. So that was a surprise.”
Created: 6/13/2026, 12:22:45 AM
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