Parimutuel betting markets as information aggregation devices: experimental results Export

@article{citeulike:239610, abstract = {Summary. The demonstrated capacity of markets to aggregate information motivates research on alternative institutions designed to do the same task. This study inquires about forms of parimutuel betting systems. Measures of information aggregation for performance evaluation are introduced. Two environments are studied. The first poses a simpler aggregation problem than does the second. Information aggregation can be detected under both environments but the degree depends on the choice of baselines. The competitive equilibrium rational expectations model is clearly the best model in the simpler environment but, in the more complex environment, models based on private information alone are more accurate. Bluffing and waiting inhibit aggregation and time and experience are conjectured to lead to more rational expectations-like performance.}, author = {Plott, Charles R. and Wit, Jorgen and Yang, Winston C.}, citeulike-article-id = {239610}, citeulike-linkout-0 = {http://www.metapress.com/content/DF49Q5NY34A6MN76}, journal = {Economic Theory}, keywords = {betting, iowa, parimutuel, sfi}, number = {2}, pages = {311--351}, posted-at = {2005-08-24 21:52:40}, priority = {0}, title = {Parimutuel betting markets as information aggregation devices: experimental results}, url = {http://www.metapress.com/content/DF49Q5NY34A6MN76}, volume = {22}, year = {2003} }

TY - JOUR ID - citeulike:239610 L3 - citeulike-article-id:239610 N2 - Summary. The demonstrated capacity of markets to aggregate information motivates research on alternative institutions designed to do the same task. This study inquires about forms of parimutuel betting systems. Measures of information aggregation for performance evaluation are introduced. Two environments are studied. The first poses a simpler aggregation problem than does the second. Information aggregation can be detected under both environments but the degree depends on the choice of baselines. The competitive equilibrium rational expectations model is clearly the best model in the simpler environment but, in the more complex environment, models based on private information alone are more accurate. Bluffing and waiting inhibit aggregation and time and experience are conjectured to lead to more rational expectations-like performance. IS - 2 JF - Economic Theory EP - 351 TI - Parimutuel betting markets as information aggregation devices: experimental results VL - 22 SP - 311 KW - betting KW - iowa KW - parimutuel KW - sfi AU - Plott, Charles AU - Wit, Jorgen AU - Yang, Winston PY - 2003/// UR - http://www.metapress.com/content/DF49Q5NY34A6MN76 ER -