Inequalities in financial markets: Evidences from a laboratory experiment

Andrea Morone and Rocco Caferra

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2020, vol. 88, issue C

Abstract: The purpose of this paper is to examine the effects on welfare distribution of quality and quantity of information among traders in laboratory financial markets. Results lead us to conclude that signal accuracy matters in underpinning inequality distribution. Generally, there is evidence that high quality signals produce lower inequality. However, by analyzing tail behavior, there seems to be cases of overconfidence in high quality signals generating "extra" level of inequality.

Keywords: Welfare distribution; Inequality; Laboratory financial markets (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:88:y:2020:i:c:s2214804320302809

DOI: 10.1016/j.socec.2020.101584

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