Does communication matter in experimental asset markets?

Aurora García-Gallego () and Tibor Neugebauer ()
Additional contact information
Aurora García-Gallego: LEE and Department of Economics, Universitat Jaume I, Castellón, Spain
Tibor Neugebauer: Department of Finance, Luxembourg School of Finance, University of Luxembourg, Luxembourg

No 2025/03, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: This study explores the impact of free-form chat on asset pricing and trading in a lab setting. In a mispricing-prone market, participants facing team-performance incentives communicated in chat groups. We compare three chat treatments: "friends", where participants personally knew their chat partners, and "random teams" with/out price prediction, where groups were assigned anonymously. While free-form chat does not reduce mispricing, it seems to influence transaction volume. A textual analysis using dictionaries focused on strategic coordination, risk management, market understanding, and information sharing shows that groups focusing on the former two tend to perform better. We review the contributions of Gary Charness to the area of communication in experiments.

Keywords: experimental asset market; communication; textual analysis (search for similar items in EconPapers)
JEL-codes: C92 D83 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.doctreballeco.uji.es/wpficheros/Garcia_and_Neugebauer_03_2025.pdf (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:jau:wpaper:2025/03

Access Statistics for this paper

More papers in Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain) Contact information at EDIRC.
Bibliographic data for series maintained by María Aurora Garcia Gallego ().