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We conduct a field experiment to see if market liquidity has a causal effect on price efficiency and, if so, why. We randomly provide liquidity in certain horse race betting markets, and not in others. We find that prices in treated markets are indeed more efficient than prices in control...
Persistent link: https://www.econbiz.de/10012969323
A common finding in laboratory studies is that subjects anchor on irrelevant initial cues when valuing assets. We run a field experiment to examine whether this heuristic can be exploited to manipulate prices in real markets. We provide early quotes in a series of horse race betting markets, and...
Persistent link: https://www.econbiz.de/10012965637
Persistent link: https://www.econbiz.de/10013176692
available EDGAR log data about accounting information acquisition activity. This approach allows us to provide unique empirical …
Persistent link: https://www.econbiz.de/10013236779
subject to a private information problem. The asset plays the role of a medium of exchange, but this role can be affected by … information, a set of experiments with adverse selection where the terminal value of notes are determined exogenously, and a set …
Persistent link: https://www.econbiz.de/10009763984
information that comes to mind. We posit that the most recently sold stocks are the most salient. Our analysis reveals that the …
Persistent link: https://www.econbiz.de/10013064591
This study analyzes investors' perception of placebic information and its impact on stock price estimates. We initiate … show that placebic information increases the perceived amount of relevant information. Individual participants …' characteristics, such as gender, financial knowledge or overconfidence, do not affect these findings. Placebic information does not …
Persistent link: https://www.econbiz.de/10012426318
Platforms routinely deploy information notifications that influence consumer behavior. As an information design … news platform that sends notifications for low value as well as high value (localized) news-information to the users ….e. either low value information or high value information or both. We find that obfuscation increases time spent on the app by …
Persistent link: https://www.econbiz.de/10014078507
On financial markets, information is a highly demanded resource and processing it to (potentially) generate excess … returns drives the activities of many market participants. Not surprisingly, this high relevance of information in markets … culminates in a high research interest focusing on how information affects traders' behavior and market outcomes. It is, however …
Persistent link: https://www.econbiz.de/10013323147
Post-earnings-announcement drift (PEAD) is one of the most solidly documented asset pricing anomalies. We use the controlled conditions of an experimental lab to investigate whether earnings autocorrelation is the driving cause of this anomaly. We observe PEAD in settings with uncorrelated and...
Persistent link: https://www.econbiz.de/10012309456