Information Cascades: Evidence from a Field Experiment with Financial Market Professionals
Previous empirical studies of information cascades use either naturally occurring data or laboratory experiments. We combine attractive elements from each of these lines of research by observing market professionals from the Chicago Board of Trade (CBOT) in a controlled environment. Analysis of over 1,500 individual decisions suggests that CBOT professionals behave differently from our student control group. For instance, professionals are better able to discern the quality of public signals and their decisions are not affected by the domain of earnings. These results have implications for market efficiency and are important in both a positive and normative sense. Copyright 2007 by The American Finance Association.
Year of publication: |
2007
|
---|---|
Authors: | ALEVY, JONATHAN E. ; HAIGH, MICHAEL S. ; LIST, JOHN A. |
Published in: |
Journal of Finance. - American Finance Association - AFA, ISSN 1540-6261. - Vol. 62.2007, 1, p. 151-180
|
Publisher: |
American Finance Association - AFA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
INFORMATION CASCADES WITH FINANCIAL MARKET PROFESSIONALS: AN EXPERIMENTAL STUDY
Alevy, Jonathan E., (2003)
-
Information cascades : evidence from a field experiment with financial market professionals
Alevy, Jonathan E., (2007)
-
Information cascades : evidence from an experiment with financial market professionals
Alevy, Jonathan E., (2006)
- More ...