Journal article
Wishes, expectations and actions: a survey on price formation in election stock markets
Journal of economic behavior & organization, Vol.39(1), pp.83-110
05/01/1999
DOI: 10.1016/S0167-2681(99)00027-X
Abstract
With error-prone and biased individual traders, can markets aggregate trader information and produce efficient outcomes? We review election stock market evidence that suggests this does happen. Individual traders appear biased and error-prone consistently, yet these markets prove quite efficient in predicting election outcomes. We also review work which documents comparable, but substantially different, phenomena in related laboratory markets. In addition, we report the results from a new laboratory session which shows how we can create particular biases that mirror those in election stock markets. Finally, we discuss how combined laboratory and field experiments can help us understand trader/market interactions.
Details
- Title: Subtitle
- Wishes, expectations and actions: a survey on price formation in election stock markets
- Creators
- Robert Forsythe - University of IowaThomas A Rietz - University of IowaThomas W Ross - University of British Columbia
- Resource Type
- Journal article
- Publication Details
- Journal of economic behavior & organization, Vol.39(1), pp.83-110
- Publisher
- Elsevier B.V
- DOI
- 10.1016/S0167-2681(99)00027-X
- ISSN
- 0167-2681
- eISSN
- 1879-1751
- Language
- English
- Date published
- 05/01/1999
- Academic Unit
- Finance; Economics
- Record Identifier
- 9984380453902771
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