Information and behavior in experimental markets

Document Type

Article

Publication Date

12-1983

Department

College of Business

Abstract

This paper reports the results of a block of experiments designed to analyze the effects of information on market performance in experimental competitive markets. Variations in institutional structure are utilized to affect the kind and amount of information subjects could gather about prices and supply and demand conditions. More information is associated with more rapid convergence, smaller variances, and closer convergence while efficiency and mean transactions prices are unaffected.

Publication Title

Journal of Economic Behavior and Organization

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