Bisière, Christophe; Décamps, Jean-Paul; Lovo, Stefano - Institut d'Économie Industrielle (IDEI), Toulouse … - 2009
We conduct a series of experiments that simulate trading in financial markets and which allows us to identify the different effects that subjects’ risk attitudes and belief updating rules have on the information content of the order flow. We find that there are very few risk-neutral subjects...