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Annotated Web Links for Paving Wall Street  

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.. 


  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's "name your own price" system.

United States Patent 6,134,534 (2000) "Conditional purchase offer management system for cruises." The 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.


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