Experimental Economics Replication Project

Input

Current price:
Token investment:
	Long Short

Result

Price: Info The price is given by: $$p(S)=k·{\e^{S\/b}}/{\e^{S\/b}+1}$$ where $S$ are the net sales.
Before investmentInitial:	0.50
After investmentCurrent:	0.50
Net sales: Info The net sales are defined as shares invested in long, net shares invested in short. They can be solved for by using the price $p$: $$S(p)=b·\l\n({p\/k}/{1-p\/k}).$$
Before investmentInital:	0
After investmentCurrent:	0
Investment impact: Info The shares purchased for a given investment are calculated by integrating the price between current net sales in the asset and the final net sales after the purchase. The value of this must be equal to the tokens invested: $$∫_{S_1}^{S_2}p(S)\d s=I.$$ This is easily solved for $S_2$ and the shares purchased are $s=S_2-S_1$. The balance change is the negative of the tokens invested. The price change is simply calculated by $p(S_1)-p(S_2)$. The average price per share is calculated by $I\/s$.
Shares purchased:	0
Balance change:	0
Price change:	0
Average price:	0
Shares: Info The shares purchased for a given investment are calculated by integrating the price between current net sales in the asset and the final net sales after the purchase. The value of this must be equal to the tokens invested: $$∫_{S_1}^{S_2}p(S)\d s=I.$$ This is easily solved for $S_2$ and the shares purchased are $s=S_2-S_1$. The balance change is the negative of the tokens invested. The price change is simply calculated by $p(S_1)-p(S_2)$. The average price per share is calculated by $I\/s$.
Shares held:	0
Investment value:	0

About

This “calculator” allows you to investigate how investing or selling tokens at different market situations affects the market. Remember that you start out with 100 Tokens.

Note that this is only an attempt to demonstrate the workings of the market, and that any error here does not reflect an error in the actual markets.

All calculations are for a market maker based on a logarithmic scoring rule. In the actual markets we use parameters $b=100$ and $k=1$.

Parameters

Token value of a share, $k$:
Liquidity parameter, $b$:

Market calculator

(As shown to the participants before the markets opened.)

Input

Result

Price: Info

Net sales: Info

Investment impact: Info

Shares: Info

About

Parameters

Price at investment:
Initial token investment:
	Long Short
Current price: