Controlling monopoly power in a double?auction market experiment

There is robust evidence in the experimental economics literature showing that monopoly power affected by trading institutions. In this paper, we study whether institutions themselves can shape agents' market behavior through formation of anchors. We recreate experimentally five different double-auction structures (perfect competition, perfect competition with quotas, cartel on price, price and monopoly) a within-subject design, varying order markets implementation. investigate endures anchors emerged previously implemented structures. Results from our classroom experiments suggest succeed preventing monopolists exploiting their power. Furthermore, negatively impacts monopolists' later