CERGE-EI Working Paper Series
- ISSN 1211-3298
-, č. 397 (2009), s. 1-15
Number of pages
15 s.
Publication form
www - www
Language
eng - English
Country
CZ - Czech Republic
Keywords
experimental betting markets ; private information ; information aggregation
Subject RIV
AH - Economics
R&D Projects
LC542 GA MŠMT - Ministry of Education, Youth and Sports (MEYS)
CEZ
AV0Z70850503 - NHU-N (2005-2011)
Annotation
Plott, Wit & Yang (2003) conduct a betting market experiment and find: First, information was aggregated. This suggests that traders updated their private information based on observed market odds. Second, a model based only on the use of private information seems to fit their data best. The authors call this paradoxical. Because the original data are lost, we replicate their experiment. Our results suggest that the paradox seems due to aggregate rather than individual level data analysis. We analyze the individual level data and explain the paradoxical results reported in Plott et al. (2003).
Workplace
Economics Institute
Contact
Tomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122
Year of Publishing
2010
Number of the records: 1
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