In this study, the authors report the results from laboratory asset markets designed to test the rational expectations hypothesis that markets aggregate and transmit the information of differentially informed traders. After documenting evidence in favor of the rational expectations model, they...

Economists believe that markets are exceptionally efficient aggregators of information. This research tests this theory by asking whether markets can successfully predict uncertain outcomes. Specifically, the UBC Election Stock Market (UBC-ESM) was created to see if market prices could be...

In this article we report the results from a series of laboratory markets in which sellers have better information about the quality of an item than any of the potential buyers. Sellers may voluntarily choose to reveal this information or they may instead decide to "blind bid" the item. We find...