Search
Results
-
Overpricing persistence in experimental asset markets with intrinsic uncertainty
(2019)Economics Discussion PapersTo study coordination in complex social systems such as financial markets, the authors introduce a new prediction market set -up that accounts for fundamental uncertainty. Nonetheless, the market is designed so that its total value is known, and thus its rationality can be evaluated. In two experiments, the authors observe that quick consensus emerges early yielding pronounced mispricing, which however do not show the standard "bubble ...Working Paper