Wisdom of the Crowd in Experiments

Larissa Katharina Senninger, "Wisdom of the Crowd in Experiments"
English | 2018 | pages: 107 | ISBN: 3658242930 | PDF | 2,6 mb
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.