Market experiments with multiple assets: A survey

John Duffy, Jean Paul Rabanal and Olga A. Rud

Chapter 18 in Handbook of Experimental Finance, 2022, pp 213-224 from Edward Elgar Publishing

Abstract: In this chapter, we review the small but growing experimental literature on trade in multiple assets as well as trade in more complex financial instruments, such as derivatives and indices. We discuss the impact of multiple asset trade on arbitrage, risk premia, and price co-movement across multiple assets. Our literature survey suggests that while single asset SSW environments may be more prone to mispricing and/ or bubbles, adding related assets (e.g. indices and derivatives) can mitigate these deviations. Further, correlations in payoffs across different assets and the cognitive abilities of subjects are important contributing factors in the pricing of assets in multiple asset markets.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Working Paper: Market Experiments with Multiple Assets: A survey (2021)
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