We study with the help of a laboratory experiment the conditions under which an uninformed manipulator –a robot trader that unconditionally buys several shares of a common value asset in the beginning of a trading period and unwinds this position later on –is able to induce higher asset...

We show by means of a laboratory experiment that the relaxation of short–selling constraints causes the price of both an overvalued and an undervalued asset to decrease. Hence, the aggregation of information by the market price becomes better in case the asset is overvalued but worse if the...