Benchmarking information aggregation in experimental markets

Theoretical and experimental literature have provided mixed insights on the ability of financial markets to perfectly aggregate private information into asset prices. We conduct an experiment designed benchmark aggregation in markets. In our lab experiment, we randomly assign subjects different institutional environments, either a market or Becker–DeGroot–Marschak mechanism. find evidence that interaction is worse for aggregation. The difference between two environments driven by price-insensitive traders who seem unable learn from Price-sensitive traders, contrast, equally well both environments.