Let's Chat ... When Communication Promotes Efficiency in Experimental Asset Markets

• 成果类型: Article
• 署名作者: Corgnet, Brice; Desantis, Mark; Porter, David
• 署名单位: emlyon business school; Centre National de la Recherche Scientifique (CNRS); CNRS - Institute for Humanities & Social Sciences (INSHS); Ecole Normale Superieure de Lyon (ENS de LYON); Universite Claude Bernard Lyon 1; Universite Jean Monnet; Universite Lyon 2; Chapman University System; Chapman University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.4967
• 发表日期: 2024
• 页码: 6550-6568
• 关键词: Information aggregation; market efficiency; COMMUNICATION; Experimental asset markets; social market design

摘要

The growing prevalence of stock market chat rooms and social media suggests that communication between traders may affect market outcomes. Using data from a series of laboratory experiments, we study the causal effect of trader communication on market efficiency. We show that communication allows markets to convey private information more effectively. This effect is robust to a wide range of information settings. The presence of insiders limits the impact, whereas posted reputation scores in the communication platform magnify it. These findings illustrate the need to consider social interactions when designing market institutions to leverage the social motives that foster information aggregation.