It is Not Just Confusion! Strategic Uncertainty in an Experimental Asset Market
Eizo Akiyama (),
Nobuyuki Hanaki () and
No 1340, AMSE Working Papers from Aix-Marseille School of Economics, France
To what extent is the observed mis-pricing in experimental asset markets caused by strategic uncertainty (SU) and by individual bounded rationality (IBR)? We address this question by comparing subjects initial price forecasts in two market environments – one with six human traders, and the other with one human and five computer traders. We find that both SU and IBR account equally for the median initial forecasts deviation from the fundamental values. The effect of SU is greater for subjects with a perfect score in the Cognitive Reflection Test, and it is not significant for those with low scores.
Keywords: Bounded rationality; Strategic uncertainty; Experiment; Asset markets; Computer traders; Cognitive Re?ection Test (search for similar items in EconPapers)
JEL-codes: C90 D84 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2013-08-08, Revised 2013-08-08
New Economics Papers: this item is included in nep-cbe and nep-upt
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Journal Article: It is Not Just Confusion! Strategic Uncertainty in An Experimental Asset Market (2017)
Working Paper: It is Not Just Confusion! Strategic Uncertainty in an Experimental Asset Market (2017)
Working Paper: It is Not Just Confusion! Strategic Uncertainty in an Experimental Asset Market (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1340
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