Let's chat... When communication promotes efficiency in experimental asset markets: A Review

Brice Corgnet, Mark Desantis and David Porter
Additional contact information
Mark Desantis: Chapman University

Working Papers from HAL

Abstract: The growing prevalence of stock market chat rooms and social media suggests communication between traders may affect market outcomes. Using data from a series of laboratory experiments, we study the causal effect of trader communication on the price efficiency of markets. We show that communication allows markets to convey private information more effectively. This effect is most pronounced when the communication platform publicizes a reputation score that might identify a person as not being truthful. This illustrates the need for market designers to consider social interactions when designing market institutions to leverage the social motives that foster information aggregation. Abstract The growing prevalence of stock market chat rooms and social media suggests communication

Keywords: Information aggregation; market efficiency; communication; experimental asset markets; social market design (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-exp, nep-fmk and nep-ict
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02509127v1
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://shs.hal.science/halshs-02509127v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-02509127

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().