We experimentally investigate how price expectations are formed in a large asset market where subjects' only task is to forecast the future price of a risky asset. The realized prices depend on these expectations. We observe small (6 participants) and large markets (about 100 participants). In...

We examine a form of adverse selection which arises when short sellers attempt to coordinate a price correction, but stock lenders learn by observing arbitrageurs' arrivals and become better informed about the true timing of an imminent price correction. We refer to this concept as coarse...

This paper empirically investigates the role of geography in online peer-to-peer loan markets. Using transaction-level data, I find strong evidence that lenders are more informed about local projects and have higher demand for better performing local projects. This effect is shown to be driven...