|
Archivo Abierto Institucional de la Universidad Carlos III de Madrid >
Investigación >
Departamentos >
Departamento de Estadística >
DES - Working Papers. Statistics and Econometrics. WS >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10016/2745
|
Files in This Item:
| ws08_38.pdf | -- 2008-07-15 -- Available on Internet -- preprint | 439,04 kB | Adobe PDF | |  |
|
| Title: | The effect of short-selling of the aggregation of information in an experimental asset market |
| Author(s): | Veiga, Helena
Vorsatz, Marc |
| Publisher: | Universidad Carlos III de Madrid. Departamento de Estadística |
| Issued date: | Jul-2008 |
| URI: | http://hdl.handle.net/10016/2745 |
| Abstract: | We show by means of a laboratory experiment that the relaxation of short--selling constraints causes the price of both an overvalued and an undervalued asset to decrease. Hence, the aggregation of information by the market price becomes better in case the asset is overvalued but worse if the asset is undervalued. With respect to payoffs, we find that not only uninformed but also some of the imperfectly informed traders suffer from the weakening of short--selling constraints. |
| Serie / Nº.: | Statistics and Econometrics Series
2008-38 |
| Keywords: | Asset market
Rational expectations
Experiment
Short Sales |
| Appears in Collections: | DES - Working Papers. Statistics and Econometrics. WS
Economists Online
|
Items in E-Archivo are protected by copyright, with all rights reserved, unless otherwise indicated.
|
