How do experienced traders respond to inflows of inexperienced traders? An experimental analysis - Aix-Marseille Université Accéder directement au contenu
Article Dans Une Revue Journal of Economic Dynamics and Control Année : 2014

How do experienced traders respond to inflows of inexperienced traders? An experimental analysis

Résumé

We conducted asset market experiments where one experienced subject interacts with five inexperienced subjects to investigate how experienced subjects change their price forecasts and trading behavior when faced with strategic uncertainty caused by inflows of inexperienced subjects. Only half the experienced subjects initially forecasted prices deviating more from the fundamental values in the market with five inexperienced subjects than in the final round of the experiment in which they had previously participated. Furthermore, the majority of our experienced subjects did not change their trading behavior. Many experienced subjects act as price stabilizers when the inflow of inexperienced subjects is not associated with other changes in market conditions.

Dates et versions

hal-01463903 , version 1 (09-02-2017)

Identifiants

Citer

Eizo Akiyama, Nobuyuki Hanaki, Ryuichiro Ishikawa. How do experienced traders respond to inflows of inexperienced traders? An experimental analysis. Journal of Economic Dynamics and Control, 2014, 45 (C), pp.1-18. ⟨10.1016/j.jedc.2014.05.007⟩. ⟨hal-01463903⟩
125 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More