Wisdom of the Crowd in Experiments
by Larissa Katharina Senninger (Author)

About the Author
Larissa Katharina Senninger holds a master’s degree from the Leopold-Franzens-University in Innsbruck. She started her professional career in the risk controlling department of a German finance service in Munich and is currently responsible for interest rate risk and liquidity risk.

About this book
Larissa Katharina Senninger analyses the phenomenon of wisdom of the crowd in experimental capital markets. Aiming to find out which market mechanism is able to aggregate different information in a meaningful way, a continuous double auction and a call auction mechanism are tested. In line with expectations, markets with continuous double auction mechanism are better able to aggregate information and additionally take a shorter time. The author shows that receiving more information enables subjects to make better estimations, whereas more information improves the quality of estimations significantly only if it is a lot more information.

Brief contents
1 Introduction  1
2 Literature  5
3 Market Experiment  19
    3.1 Experimental Design  19
    3.2 Individual Estimation  22
    3.3 Endowment  24
    3.4 Information Levels  26
    3.5 Treatments  29
        3.5.1 Call Auction Mechanism  30
        3.5.2 Continuous Double Auction Mechanism  31
    3.6 Payoff  33
    3.7 Questionnaire  33
4 Results  35
    4.1 Estimations of Glass Value  35
    4.2 Estimations in Call Auction Markets and Continuous Double Auction Markets  45
    4.3 Market Mechanisms  51
    4.4 Trading Volume and Net Change of Assets  64
    4.5 Critique and Ideas for Future Research  69
5 Conclusion  73
6 Appendix  77
7 References  89

Series: BestMasters
Pages: 112 pages
Publisher: Springer Gabler; 1st ed. 2018 edition (November 4, 2018)
Language: English
ISBN-10: 3658242930