Experiment - Plott & Sunder 1998
From P-MART wiki
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The experiment run by Plott & Sunder in 1998 is one of several experiments which paved the way to future research in the field on Information Markets. The experiment was intended to explore the performance of markets as ''[[:category:Aggregate information|information aggregation]]'' mechanisms. The markets were set up in a ''[[:category:Laboratory|laboratory]]'' setting and traded ''[[:Category:Synthetic events|synthetic events]]''. The markets were ''[[:category:Small size markets|small]]'', involving 4-12 traders, and were conducted in several ''[[:Category:Short duration|short]]'' periods. The marketplace employed an oral ''[[:Category:Continuous Double Auction (CDA)|double auction]]'' mechanism, and operated with ''[[:Category:Real-money|real-money]]''. The initial endowment to traders was in the form of ''[[:Category:Initial capital endowment|capital]]'' and ''[[:Category:Initial securities endowment|securities ]]'', and the final dividends were calculated based on the ''[[:Category:Winner-takes-all securities|winner-takes-all securities]]'' and [[:Category:Index securities|Index securities]] models. There was ''[[:Category:No interaction|no interaction]]'' between participants. | The experiment run by Plott & Sunder in 1998 is one of several experiments which paved the way to future research in the field on Information Markets. The experiment was intended to explore the performance of markets as ''[[:category:Aggregate information|information aggregation]]'' mechanisms. The markets were set up in a ''[[:category:Laboratory|laboratory]]'' setting and traded ''[[:Category:Synthetic events|synthetic events]]''. The markets were ''[[:category:Small size markets|small]]'', involving 4-12 traders, and were conducted in several ''[[:Category:Short duration|short]]'' periods. The marketplace employed an oral ''[[:Category:Continuous Double Auction (CDA)|double auction]]'' mechanism, and operated with ''[[:Category:Real-money|real-money]]''. The initial endowment to traders was in the form of ''[[:Category:Initial capital endowment|capital]]'' and ''[[:Category:Initial securities endowment|securities ]]'', and the final dividends were calculated based on the ''[[:Category:Winner-takes-all securities|winner-takes-all securities]]'' and [[:Category:Index securities|Index securities]] models. There was ''[[:Category:No interaction|no interaction]]'' between participants. | ||
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| + | The traders were ''[[:Category:Invited traders|invited]]'' students and had ''[[:Category:No-stake in outcome|no stakes]]'' in the outcome of the markets. The experiment simulated conditions were that traders had ''[[:Category:Perfect information|perfect information]]''. At the end of the experiment the traders received a ''[[:Category:Monetary reward|monetary reward]]'' according to their ''[[:Category:Performance incentive|performance]]''. | ||
The first experiment in this series of experiment was run by Plott & Sunder in 1982 and was replicated in many subsequent studies | The first experiment in this series of experiment was run by Plott & Sunder in 1982 and was replicated in many subsequent studies | ||
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== References == | == References == | ||
| + | Plott, C. R., & Sunder, S. (1988). [http://www.jstor.org/stable/1831348 Efficiency of Experimental Security Markets with Insider Information: An Application of Rational-Expectations Models]. ''The Journal of Political Economy, 90(4), 663'' | ||
Plott, C. R., & Sunder, S. (1988). [http://www.jstor.org/stable/1911360 Rational expectations and the aggregation of diverse information in laboratory security markets]. ''Econometrica, 56(5), 1085-1118'' | Plott, C. R., & Sunder, S. (1988). [http://www.jstor.org/stable/1911360 Rational expectations and the aggregation of diverse information in laboratory security markets]. ''Econometrica, 56(5), 1085-1118'' | ||
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[[Category:Invited traders]] | [[Category:Invited traders]] | ||
[[Category:Laboratory]] | [[Category:Laboratory]] | ||
| + | [[Category:Markets]] | ||
[[Category:Monetary reward]] | [[Category:Monetary reward]] | ||
[[Category:No interaction]] | [[Category:No interaction]] | ||
