Welcome to jMarkets
Important Deployment Requirement!
Both the experimenter and the subjects need Java 1.5.x or higher (aka Java 2 Platform Standard Edition 5.0) or higher to use jMarkets! You can get your upgrade by clicking at the Java 1.5.x or higher download page. Experimenters and subjects with Apple computers can now use jMarkets provided they have OS X 10.4(Tiger). However, they also have to upgrade to Java 1.5. After installation, launch "Java Preferences" in the '/Applications/Utilities/Java?/J2SE 5.0' folder and change the default Java version from 1.4.2 to 1.5. In addition, MAC users may also need to re-define the symbolic link in the Versions directory of the JavaVM framework.
jMarkets: What is it and Why do we need it?
Significant improvements in transportation and communication have made socio-economic systems more interdependent. This entails new risks (e.g. an unstable socio-economic climate elsewhere may have repercussions for the US) but new opportunities emerge as well, for resource allocation, risk sharing, and the creation and dissemination of information and knowledge. Little is known, however, about large interconnected socio-economic systems. Field studies are hard to design and implement because the inter-relationships that are at the heart of the problem are either unobservable or beyond control. In addition, for them to be informative, field studies often require the researcher to interfere in ongoing social policies or modify ongoing business enterprise, a practice that is generally met with resistance. As a result, scientific questions or policy-oriented research (such as the design of new institutions) are rarely attempted.
Laboratory experiments- where people interact in an environment with real risks and real rewards - have gained broad acceptance as a complement to field studies. However, they have mostly been limited to small-scale problems, involving, e.g., single markets (partial equilibrium analysis), or confined strategic (game theory) and political (voting theory) situations.
Caltech has recently changed this situation. Starting with Charles Plott, Caltech researchers developed experimental procedures to implement and control large-scale experiments with interwoven financial and monetary systems. Exciting new insights have emerged in these experiments. Among other things, they have led - for the first time - to an understanding of whether and why such systems equilibrate. The results demonstrate that experimentation with interconnected socio-economic systems is both viable and informative.
jMarkets is meant to provide the infrastructure for running large-scale experiments. It is built around a specific theoretical framework, namely, General Equilibrium Theory (GE). This is the branch of Economics that studies large, competitive, interdependent systems.
jMarkets is an open-source, pure-Java and J2EE compliant project. The goal is to make the software fast, flexible, robust, easy to port, and suitable for use through the World-Wide-Web. These features make the software accessible across disciplines, usable in a variety of locations and populations, and a tool to which many research groups will have easy access and to which they will be able to contribute.
Peter Bossaerts and Walter Yuan are the scientific and technical project supervisors, respectively. Both are from Caltech. William Zame (from UCLA) is scientific advisor. Raj Advani is the lead programmer.