Benchmarking information aggregation in experimental markets

Volume: 59, Issue: 4, Pages: 1500 - 1516
Published: Jul 4, 2021
Abstract
Theoretical and experimental literature have provided mixed insights on the ability of financial markets to perfectly aggregate private information into asset prices. We conduct an experiment designed to benchmark information aggregation in markets. In our lab experiment, we randomly assign subjects to different institutional environments, either a market or a Becker–DeGroot–Marschak mechanism. We find evidence that market interaction is worse...
Paper Details
Title
Benchmarking information aggregation in experimental markets
Published Date
Jul 4, 2021
Volume
59
Issue
4
Pages
1500 - 1516
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