Thumbnail
Access Restriction
Open

Author Akiyama, Eizo ♦ Hanaki, Nobuyuki ♦ Ishikawa, Ryuichiro
Source Hyper Articles en Ligne (HAL)
Content type Text
Publisher Wiley
File Format PDF
Language English
Subject Keyword Experiment ♦ Strategic uncertainty ♦ Bounded rationality ♦ Asset markets ♦ Computer traders ♦ Cognitive Reflection Test ♦ shs ♦ Humanities and Social Sciences/Economies and finances
Abstract To what extent is the observed mispricing in experimental asset markets caused by strategic uncertainty and by confusion? 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 strategic uncertainty and confusion contribute equally to the median initial forecast deviation from the fundamental value. The effect of strategic uncertainty is greater for subjects with a perfect score in the Cognitive Reflection Test, and it is not significant for those with low scores.
ISSN 00130133
Educational Use Research
Learning Resource Type Article
Publisher Date 2017-10-24
e-ISSN 14680297
Journal Economic Journal
Volume Number 127