Information Mirages in Experimental Asset Markets
Colin Camerer () and
Keith Weigelt
The Journal of Business, 1991, vol. 64, issue 4, 463-93
Abstract:
One explanation for the apparent volatility of asset prices is that people overreact to trades that are uninformative, creating self-generated information "mirages." The authors test whether mirages occur in experimental asset markets. There are insiders in only half the periods, so traders cannot be sure if the trades of others reveal information. The authors observed four clear mirages in forty-seven periods without insiders. Mirages always occurred early in an experimental session; in later periods, traders learn whether there are insiders by observing nonprice information, such as the speed of trading, and mirages occurred only temporarily. Copyright 1991 by University of Chicago Press.
Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (89)
Downloads: (external link)
http://dx.doi.org/10.1086/296548 full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
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:ucp:jnlbus:v:64:y:1991:i:4:p:463-93
Access Statistics for this article
More articles in The Journal of Business from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().