Abstract
One of the most robust findings in the experimental asset market literature is the experience effect: markets are efficient, that is, they generate prices close to fundamentals, as long as at least some traders are familiar with the environment. In this paper we show that market efficiency of mixed-experience markets is sensitive to the previous success of experienced traders. This sensitivity results from differences in trading behavior that prevail across experimental rounds. On the other hand, we find no evidence for the experience effect: our markets with experienced and inexperienced traders are not different from each other, even though our design and procedures closely follow those from the literature.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
