- A-Z
- Jena Economic Resea...
- Volume 9
- Bubbles in hybrid m...
Bubbles in hybrid markets -
How expectations about algorithmic
trading affect human trading
- Autor(in)
- Erschienen
- 10. Februar 2015
- Nummer des Discussion-Papers
-
2015-003
- Schlagwort(e)
-
Algorithmic Traders
Bubbles
Expectations
Experiment
- Zusammenfsg.
-
Bubbles are omnipresent in lab experiments with asset markets. But these experiments were (mostly) conducted in environments with only human traders. Today markets are substantially determined by algorithmic traders. Here we use a laboratory experiment to measure human trading behaviour changes if these humans expect algorithmic traders. To disentangle the direct effect algorithmic traders have we use a clean design where we can manipulate only the expectations of human traders. We find clearly smaller bubbles if human traders expect algorithmic traders to be present.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- C92 - Laboratory, Group Behavior ; G0 - General