Date of Original Version
Abstract or Description
Before the opening of the Paris Bourse, traders place orders and indicative prices are set. This offers a laboratory to study empirically the taˆtonnement process through which markets discover equilibrium prices. Since preopening orders can be revised or canceled before the opening, indicative prices could be noise. We test this against the hypothesis that preopening prices reflect learning.
Journal of Political Economy, 107, 6, 1218.