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2020
- handle: 10670/1.vtnzbi
- halshs: halshs-02509127
info:eu-repo/semantics/OpenAccess
Mots-clés
Information aggregation market efficiency communication experimental asset markets social market design C - Mathematical and Quantitative Methods/C.C9 - Design of Experiments/C.C9.C92 - Laboratory, Group Behavior G - Financial Economics/G.G1 - General Financial Markets/G.G1.G14 - Information and Market Efficiency • Event Studies • Insider TradingSujets proches
Communication, Primitive Mass communicationCiter ce document
Brice Corgnet et al., « Let's chat... When communication promotes efficiency in experimental asset markets: A Review », HALSHS : archive ouverte en Sciences de l’Homme et de la Société, ID : 10670/1.vtnzbi
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Résumé
The growing prevalence of stock market chat rooms and social media suggests communication between traders may affect market outcomes. Using data from a series of laboratory experiments, we study the causal effect of trader communication on the price efficiency of markets. We show that communication allows markets to convey private information more effectively. This effect is most pronounced when the communication platform publicizes a reputation score that might identify a person as not being truthful. This illustrates the need for market designers to consider social interactions when designing market institutions to leverage the social motives that foster information aggregation. Abstract The growing prevalence of stock market chat rooms and social media suggests communication