What is ‘Walrasian Market’
An economic model of a market process in which orders are collected into batches of buys and sells and then analyzed to determine a clearing price that will decide the market price. Also referred to as “call market”.
Explaining ‘Walrasian Market’
The NYSE uses a similar process before the opening bell in order to determine opening prices. A specialist will look at all the collected orders for a particular security and select the price that will clear the greatest number of trades. In fact, up until 1871 all trading on the NYSE was executed in this fashion.
Further Reading
- Banking, financial intermediation and corporate finance – books.google.com [PDF]
- Financial markets and economic development: myth and institutional reality – books.google.com [PDF]
- Volatility, information, and double versus walrasian auction pricing in US and Japanese futures markets – www.sciencedirect.com [PDF]
- Some considerations on the causes of structural change in financial markets – www.tandfonline.com [PDF]
- Post Walrasian and post Marxian economics – www.aeaweb.org [PDF]
- Diversification and competition: financial intermediation in a large Cournot–Walras economy – www.sciencedirect.com [PDF]
- Walras' law, Say's law and liquidity preference in general equilibrium analysis – www.jstor.org [PDF]
- The economics of markets and platforms – onlinelibrary.wiley.com [PDF]
- Market making by price-setting firms – academic.oup.com [PDF]
