Document Type
Article
Publication Date
4-2019
Abstract
The ability of markets to aggregate diverse information is a cornerstone of economics and finance, and empirical evidence for such aggregation has been demonstrated in previous laboratory experiments. Most notably Plott and Sunder (1988) find clear support for the rational expectations hypothesis in their Series B and C markets. However, recent studies have called into question the robustness of these findings. In this paper, we report the result of a direct replication of the key information aggregation results presented in Plott and Sunder. We do not find the same strong evidence in support of rational expectations that Plott and Sunder report suggesting information aggregation is a fragile property of markets.
Recommended Citation
Corgnet, B., Deck, C., DeSantis, M., Hampton, K., Kimbrough, E.O. (2019). Reconsidering rational expectations and the aggregation of diverse information in laboratory security markets. ESI Working Paper 19-11. Retrieved from https://digitalcommons.chapman.edu/esi_working_papers/269/
Comments
Working Paper 19-11