Market economics can be applied to solving many problems in computer science, especially regarding resource allocation. E.g. A Multi-Agent System for Controlling Building Environments
An allocation is Pareto Efficient if no one can be made better off without making someone worse off.
The utility or margin in a trade is the difference between the price paid and the price the buyer/seller was willing to pay.
Supply and demand curves change constantly in a Continuous Double Auction as trades are made and traders leave the market.
Vernon Smith pioneered experimental economics.
Root mean square deviation of transaction prices around the theoretical equilibrium price, as a percentage (lower is better).
Total utility earned by all traders, divided by the theoretical maximum possible utility (surplus), expressed as a percentage. Measures how effective the market is at extracting gains. Can never be over 100%
Profit earned by an agent, divided by its expected profit if all trades took place at equilibrium price. Measures how well an individual agent performs. Can be over 100%.
Gode and Sunder found that most of the intelligence is in the market itself, and not the traders.