There are N=40 students in the classroom. Half of you will be potential sellers, and the other half will be potential buyers. Potential sellers will receive an endowment of one wheelbarrow, which they may sell. Potential buyers may buy wheelbarrows from people who have them. You also have private valuations for these wheelbarrow vi. Ram will act as a central auctioneer. Potential sellers have to submit a sell order to ram for one wheelbarrow. Specify a limit price LSi. Potential buyers have to submit a buy order for one wheelbarrow. Specify a limit price LBj. Im going to aggregate your orders, and report a common clearing price p Sellers profit : p vi if (p LSi) Buyers profit : vj p if (p lBj ) Your valuations are private and integers, you need to submit integer limit prices be- tween 50 and 150 inclusive. How much should I place as limit order . When my valuation (vi) is 120.

Limit Order Market without Asymmetric Information When there are no informed traders in the market, the wait times do not depend on t and the configuration of the other side of the book doesnt matter, so just for the case of limit orders without asymmetric information we simplify the notation to be .