This
page provides an comprehensive guide to the web site links given in the
comprehensive Notes section of Paving Wall Street:
Experimental Economics and the Quest for the Perfect Market by Ross M.
Miler, John Wiley & Sons, 2002. These links are now quite old;
however, with Michael Turner's able assistance many of them are still
functional as of early 2012. No Wikipedia entries are provided because
they did not exist when this list was originally compiled during the
writing of the book in late 1999 through early 2001.
Navigate
to links by clicking on the 
that precedes each listing. Some documents may require special players or plug-ins in
order to view them properly. Documents in PDF format require Adobe's free Acrobat
Reader or other PDF-capable file viewers..
Preface
J. A. N. Lee (1994) provides a biographical sketch of John Louis von Neumann with a
discussion of his work on EDVAC.
F.
A. Hayek (1937) “Economics and Knowledge.” Hayek's ideas on the
information-aggregating properties of markets begins to form.
F.
A. Hayek (1945) “The Use of Knowledge in Society.” Hayek's classic paper.
The Friedrich Hayek Scholars’ Page.
Chapter 1: Wind Tunnel Markets
Securities and Exchange Commission (1998) “Trading Analysis of October 27 and
28, 1997.” The official report on the Blue Monday in the U.S. financial
markets.
Katharine Ross and George Sofianos (1998). “An Analysis of Price
Volatility October 27 and 28, 1997.” A New
York Stock Exchange report on Blue Monday in PDF format.
Arthur Levitt (1998) “Concerning Circuit Breakers" is senate testimony by
the former SEC chairman on stock market circuit breakers.
James Koughan (1996) “The Collapse of the Tacoma Narrows Bridge, Evaluation of
Competing Theories of its Demise, and the Effects of the Disaster of Succeeding
Bridge Designs.” A report from the Department of Mechanical Engineering at the
University of Texas.
Video
of the 1950 collapse of the Tacoma Narrows Bridge.
Michael C. Holloway (1999) “From Bridges and Rockets, Lessons for Software
Systems” is a NASA report that discusses the wind tunnel tests performed on
the Tacoma Narrows Bridge.
Chapter 2: Bargain Hunting
Edward Chamberlin's career as characterized by New School University.
Charles A. Holt (1996) “Classroom Games: Trading in a Pit Market.” Journal
of Economic Perspectives, Vol. 10, No. 1 (Winter), pp. 193–203. A
beginner's guide to running market experiments available online in PDF format.
(Related papers by Charles A. Holt are listed under the appropriate chapter.)
Chapter 3: A Tale of Two Smiths
John Law (1705) Money and Trade Considered is the source of the
diamond/water paradox. To see a painting of John Law click here.
Adam Smith (1776) An Inquiry into the Nature and
Causes of the Wealth of Nations kicked off classical economic theory.
Adam Smith (1759) The Theory of Moral Sentiments provides some deeper
insights into his philosophy.
Resources on François Quesnay and his Tableau Économique
are available at the New School University web site.
John Stuart Mill (1848) Principles of Political
Economy is a brilliant synthesis of classical economics.
Alfred Marshall (1920). Principles of Economics, 8th
edition (first published in 1980) is the first modern economics textbook and
provides the ultimate resolution to the diamond/water paradox using supply and
demand.
Klaus Beckmann and Martin Werding (1994) “Markets and the Use of Knowledge
Testing the ‘Hayek hypothesis’ in Experimental Stock Markets.” A survey of
experimental studies of the Hayek hypothesis.
Chapter 4: Bubbles in the Lab
Susan K Laury and Charles A. Holt (1999) “Multi-Market Equilibrium and the Law
of One Price.” Southern Economic Journal,
Vol. 65, No. 3 (January), pp. 611–621. A basic speculation experiment for home
or classroom use available online in PDF format.
Cheryl B Ball and Charles A. Holt (1998) “Classroom Games: Bubbles in an
Asset Market.” Journal of Economic Perspectives,
Vol. 12, No. 1 (Winter), pp. 207–218. How to run a bubble experiment available
online in PDF format.
Lucy F. Ackert, Bryan K. Church, and Narayanan Jayaraman (1999) “An
Experimental Study of Circuit Breakers: The Effects of Mandated Market Closures
and Temporary Halts on Market Behavior.” A working paper from the Federal
Reserve Bank of Atlanta that provides experimental evidence that circuit
breakers may not work. Available online in PDF format.
Chapter 5: Bubbles in the Wild
Bennett Daviss (1998) “Let’s Get Emotional.” New Scientist,
Vol. 159, No. 2151 (September 19). An overview of behavioral finance and
economics. (Link listed in Paving Wall Street not longer works. Access to
full article online restricted to New Scientist subscribers and qualified
institutions.)
Karl Marx (1867) Capital Volume 1. Early observations on the tendency of
bubbles to form in market systems.
Peter Bossaerts, Leslie Fine, and John Ledyard (2000) “Inducing Liquidity In
Thin Financial Markets Through Combined-Value Trading Mechanisms” is an
experimental approach to dealing with thin markets and is available online in
PDF format.
Stefano Athanasoulis, Robert Shiller, and Eric van Wincoop (1999) “Macro
Markets and Financial Security.” Economic Policy
Review (Federal Reserve Bank of New York), Vol. 5, No. 1 (April).
Discussion of ways to complete markets with derivative securities based on
statistical measures of macroeconomic activity. Available online in PDF format.
Christopher Faille (2000) story on the Shad-Johnson Accord from HedgeWorld
Daily News
Chapter 6: Black Monday
The University of Western Ontario provides several links to articles on Black
Monday and Terrible Tuesday.
The RAND Corporation's account of its history.
Chapter 7: All the World's an Option
Jean-Phillipe Bouchard (1998) provides an econophysics approach to option
valuation.
Ross Miller (1993) provides source code for using the Black-Scholes formula in Mathematica.
Mordecai Kurz and Maurizio Motolese, 2000. “Endogenous Uncertainty and Market
Volatility” provides one way to model volatility within a general equilibrium
framework.
Ross Miller (1998) looks at the predictive power of an option-valuation approach
to default prediction.
Chapter 8: The Invisible Hand Discovers Prices
Jeffrey Michael Bacidore and Marc L. Lipson (2001) “The Effects of Opening and
Closing Procedures on the NYSE and Nasdaq” compares the two major U.S.
exchanges
Chapter 9: Sending Signals and Keeping Score
Charles A. Holt and Roger Sherman, 1999. “Classroom Games: A Market for
Lemons.” Journal of Economic Perspectives,
Vol. 13, No. 1 (Winter), pp. 205–214. How to run your own lemons experiment in
PDF format.
Thorstein Veblen (1899) The Theory of the Leisure
Class. The source of conspicuous consumption and Veblen's other ideas
about the signaling of social status.
Iowa Electronic Markets conducts markets over the Internet based on the outcomes
of political and economic events.
The Boskin Commission's 1996 study recommending changes in how prices indexes
are computed in the United States.
Chapter 10: It All Comes Down to Money
Ernest Fehr and Jean-Robert Tyran (2000) construct experiments to examine the
phenomenon of money illusion.
John Duffy (1998) surveys experiments involving money.
Jerry L. Jordan, (1996) “Governments and Money.” Cato
Journal, Vol. 15, Nos. 2–3 (Fall/Winter). Some of the issues for
electronic money.
Chapter 11: The Market is Tied Up in Knots
Stephen Budiansky (2000) “Engineering: The Physics of Gridlock.” Atlantic
Monthly, Vol. 286, No. 6 (December). Traffic jams and gridlock in the
physical world.
Kevin Dowd (1999) “Too Big to Fail? Long-Term Capital Management and the
Federal Reserve.” A briefing paper in PDF format that argues that LTCM was not
"too big to fail."
The Bank for International Settlements (1999) report on the LTCM affair in PDF
format.
The President’s Working Group on Financial Markets (1999) report on the LTCM
affair in PDF format.
John Barger's friendly introduction to artificial intelligence.
Chapter 12: Making Markets Intelligent
United
States Patent 6,085,169 (2000) "Conditional purchase offer management
system." The basic patent for priceline.com's "name your own
price" system.
United States Patent 6,134,534 (2000) "Conditional purchase offer
management system for cruises." The priceline.com system extended to handle
cruise liners.
U.S. Treasury STRIPS information center.
Chapter 13: The Smart Auction Block
History and trivia about the Monopoly board game.
Peter Cramton and Jesse A. Schwartz (1999) describe code bidding strategies that
were used by bidders in the first FCC spectrum auctions.
The Federal Communications Commission web site has been redesigned since Paving
Wall Street went to press. This link
leads to all the papers and materials presented at FCC conferences on
combinatorial bidding.
Laura Rohde (2000) writes from the IDG News Service about the European spectrum
auctions and the naming of British auction head, Ken Binmore, as Euro IT person
of the year (link dead).
Chapter 14: Good Intentions
Federal Communications Commission May 5-7, 2000 conference on combinational
auctions. (New location)
Securities and Exchange Commission web site.
Los Angeles Times special reports on the California Energy Crisis.
Roger D. Congelton (1999) "Buchanan and the Virginia School."
James Buchanan's collected works online.
