It is Not Just Confusion! Strategic Uncertainty in an Experimental Asset Market
Eizo Akiyama (),
Nobuyuki Hanaki () and
Working Papers from HAL
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: asset markets; computer traders; cognitive reflection test; bounded rationality; strategic uncertainty; experiment (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp, nep-neu and nep-upt
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00854513
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed
Downloads: (external link)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-00854513
Access Statistics for this paper
More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().