Uninformative announcements and asset trading behavior

Corgnet, Brice; Kujal, Praveen; Porter, Dave

Publication:
Uninformative announcements and asset trading behavior

dc.affiliation.dpto	UC3M. Departamento de Economía	es
dc.contributor.author	Corgnet, Brice
dc.contributor.author	Kujal, Praveen
dc.contributor.author	Porter, Dave
dc.contributor.editor	Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned	2008-01-02T14:36:49Z
dc.date.available	2008-01-02T14:36:49Z
dc.date.issued	2007-12
dc.description.abstract	Financial markets are overwhelmed by daily announcements. We use experimental asset markets to assess the impact of uninformative communications on asset prices and trading volumes. We deliver uninformative messages in standard experimental asset markets and find that trading volumes and prices are impacted by these messages. In particular, the release of a pre-announced preset message to traders “The price is too high” in predetermined trading periods decreases the amplitude and duration of bubbles. Also, the release of the messages “The price is too high” or “The price is too low” reduces trading volume with inexperienced subjects.
dc.format.mimetype	application/pdf
dc.identifier.issn	2340-5031
dc.identifier.repec	we078350
dc.identifier.uri	http://hdl.handle.net/10016/1148
dc.language.iso	eng
dc.language.iso	eng
dc.relation.ispartofseries	UC3M Working papers. Economics
dc.relation.ispartofseries	07-50
dc.rights	Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.accessRights	open access
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.eciencia	Economía
dc.subject.jel	C92
dc.subject.jel	G12
dc.subject.other	Experimental asset markets
dc.subject.other	Bubbles
dc.subject.other	Market communications
dc.subject.other	Bounded rationality
dc.title	Uninformative announcements and asset trading behavior
dc.type	working paper	*
dspace.entity.type	Publication