The purpose of this paper is to examine the effects on welfare distribution of quality and quantity of information among traders in laboratory financial markets. Results lead us to conclude that signal accuracy matters in underpinning inequality distribution. Generally, there is evidence that high quality signals produce lower inequality. However, by analyzing tail behavior, there seems to be cases of overconfidence in high quality signals generating "extra" level of inequality.
Inequalities in financial markets: Evidences from a laboratory experiment
Morone A.
;Caferra R.
2020-01-01
Abstract
The purpose of this paper is to examine the effects on welfare distribution of quality and quantity of information among traders in laboratory financial markets. Results lead us to conclude that signal accuracy matters in underpinning inequality distribution. Generally, there is evidence that high quality signals produce lower inequality. However, by analyzing tail behavior, there seems to be cases of overconfidence in high quality signals generating "extra" level of inequality.File in questo prodotto:
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