Experiment - Plott & Sunder 1998
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(Created page with '== Discussion == == References == Plott, C. R., & Sunder, S. (1988). [http://www.jstor.org/stable/1911360 Rational expectations and the aggregation of diverse information in lab…') |
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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. | ||
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| + | 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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== Discussion == | == Discussion == | ||
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[[Category:Perfect information]] | [[Category:Perfect information]] | ||
[[Category:Performance incentive]] | [[Category:Performance incentive]] | ||
| - | [[Category: | + | [[Category:Real-money]] |
[[Category:Short duration]] | [[Category:Short duration]] | ||
[[Category:Small size markets]] | [[Category:Small size markets]] | ||
[[Category:Synthetic events]] | [[Category:Synthetic events]] | ||
[[Category:Winner-takes-all securities]] | [[Category:Winner-takes-all securities]] | ||
