Measuring the Impact of Information Aggregation Mechanisms : An Experimental Investigation

Titelangaben

Bennouri, Moez ; Gimpel, Henner ; Robert, Jaques:
Measuring the Impact of Information Aggregation Mechanisms : An Experimental Investigation.
In: Journal of Economic Behavior & Organization. Bd. 78 (2011) Heft 3 . - S. 302-318.
ISSN 1879-1751
DOI: https://doi.org/10.1016/j.jebo.2011.01.016

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Abstract

This paper measures the effectiveness of market-based and cheap-talk information aggregation. Both information aggregation mechanisms (IAMs) are frequently used prior to IPOs and sales of Treasury bonds – it is largely acknowledged that they provide agents with useful information for subsequent bidding. In a laboratory experiment, we study how information provided by IAMs interacts with private and public information and how agents integrate it in their strategic behavior in a multi-unit common-value uniform-price auction. In market-based IAMs, information gathering prevails and subsequent bidding shows that subjects acknowledge the precision of information. However, in cheap-talk IAMs, there is almost no transmitted information.