Resource title

No-trade in the laboratory

Resource image

image for OpenScout resource :: No-trade in the laboratory

Resource description

We test the no-trade theorem in a laboratory financial market where subjects can trade an asset whose value is unknown. Subjects receive clues on the asset value and then set a bid and an ask at which they are willing to buy or to sell from the other participants. In treatments with no gains from trade, theory predicts no trading activity, whereas, in treatments with gains, trade becomes theoretically possible. Our experimental results show that subjects fail to reach the no-trade equilibrium by pure introspection, but they learn to approach it over time, through market feedback and learning.

Resource author

Marco Angrisani, Antonio Guarino, Steffen Huck, Nathan Larson

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26481

Resource license

Adapt according to the presented license agreement and reference the original author.