Asset Market Experiments with Diverse Information

HANDBOOK OF EXPERIMENTAL FINANCE, Sascha Füllbrunn and Ernan Haruvy (eds), Edward Elgar Publishing, Forthcoming

31 Pages Posted: 28 Oct 2021

See all articles by Dominik Schmidt

Dominik Schmidt

MCI - The Entrepreneurial School

Thomas Stöckl

MCI - The Entrepreneurial School

Date Written: October 22, 2021

Abstract

On financial markets, information is a highly demanded resource and processing it to (potentially) generate excess returns drives the activities of many market participants. Not surprisingly, this high relevance of information in markets culminates in a high research interest focusing on how information affects traders' behavior and market outcomes. It is, however, challenging to meet this interest with empirical data as it is almost impossible to observe or control, which information traders possess in real markets. Therefore, laboratory environments are a perfect tool to address research questions emerging in this field as they allow researchers to design and control all relevant aspects, in particular, the information structure prevailing in a market. In this paper, we review the experimental finance literature investigating markets with different information structures to better understand how these structures influence trader behavior and market outcomes. By doing so, we provide the interested reader with a comprehensive overview of the main research areas and the respective results.

Keywords: Experimental finance, asset market, diverse information, asymmetric information, private information, heterogeneous information, information aggregation, information dissemination

JEL Classification: C92, D82, G10, G12, G14, G40

Suggested Citation

Schmidt, Dominik and Stöckl, Thomas, Asset Market Experiments with Diverse Information (October 22, 2021). HANDBOOK OF EXPERIMENTAL FINANCE, Sascha Füllbrunn and Ernan Haruvy (eds), Edward Elgar Publishing, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3947626 or http://dx.doi.org/10.2139/ssrn.3947626

Dominik Schmidt

MCI - The Entrepreneurial School ( email )

Universitätsstraße 15
Innsbruck, 6020
Austria

Thomas Stöckl (Contact Author)

MCI - The Entrepreneurial School ( email )

Universitätsstraße 15
Innsbruck, 6020
Austria

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
53
Abstract Views
625
rank
510,776
PlumX Metrics