| Author/Presenter |
Philippe Gregoire (Université Laval) |
| Co-authors |
Hui Huang (University of Victoria at Wellington) |
| |
Jonathan Coupland (Université Laval) |
| Title |
Informed and Uninformed Trading with Correlated Assets: An Experiment |
| Abstract |
An experimental asset market with two correlated assets is set up with two different treatments regarding the flow of information about the value of the assets, namely a case with continuous flow of information versus a case wherein there is a period of time without information (the blackout case). We also conduct treatments with and without informed traders, the latter having private information about one asset only (asset 1). The presence of informed traders increases volume in both assets, and the latter trade more aggressively asset 2 than asset 1 when the flow of information is continuous. The presence of informed traders does not reduce the pricing error in asset and it increases the pricing error in asset 2. |
| Web Link |
http://www.fsa.ulaval.ca/personnel/PHGRE5/files/expf07.pdf |