In prior studies, double auctions populated by profit motivated human traders as well as "zero-intelligence" programmed traders have been shown to converge to approximate Pareto optimal allocations in partial equilibrium settings. We present human and computational experiments to examine the behavior of double auctions in two good general equilibrium settings. We find that economies with profit motivated human traders approximate Pareto optimal allocations. So do the economies with "zero-intelligence" traders.

Co-authors Dhananjay Gode and Stephen Spear