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Overpricing and stake size: On the robustness of results from experimental asset markets

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  • Kocher, Martin G.
  • Martinsson, Peter
  • Schindler, David

Abstract

We assess the effects of a stake size variation on experimental asset markets. Our results show that a fivefold increase in stake size leads to higher trading frequencies. Mispricing and overpricing, however, are not fundamentally different for different stake sizes.

Suggested Citation

  • Kocher, Martin G. & Martinsson, Peter & Schindler, David, 2017. "Overpricing and stake size: On the robustness of results from experimental asset markets," Economics Letters, Elsevier, vol. 154(C), pages 101-104.
    • Handle: RePEc:eee:ecolet:v:154:y:2017:i:c:p:101-104
    DOI: 10.1016/j.econlet.2017.02.035
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    Cited by:

    1. Roger, Tristan & Roger, Patrick & Willinger, Marc, 2022. "Number sense, trading decisions and mispricing: An experiment," Journal of Economic Dynamics and Control, Elsevier, vol. 135(C).

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    More about this item

    Keywords

    Experimental finance; Incentives; Traders; Bubbles;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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