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Content archived on 2024-05-28

Prices and Expectations in Asset Markets – a Field Experiment

Objective

The field of experimental asset markets applies experiments as a research procedure to investigate price patterns in asset markets. Initial research in the field exhibited deviations of prices from fundamental values and presented possible explanations to this phenomenon. One of the advantages of the experimental approach is its ability to elicit traders’ actual beliefs regarding future prices and by that, to model the way traders form their beliefs in asset markets. The purpose of this study is to conduct a field experiment in order to improve the ability of the experimental approach to simulate trade in real asset markets. The experimental design will enable subjects to trade several months, without the recognition that they participate in an experiment. Results, therefore, will be more reliable as an explanation to the field. In addition, the unique experimental design will elicit the beliefs of participants regarding future prices to better understand the way traders in asset markets interpret information and form their beliefs.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

FP7-PEOPLE-2010-RG
See other projects for this call

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MC-IRG - International Re-integration Grants (IRG)

Coordinator

BEN-GURION UNIVERSITY OF THE NEGEV
EU contribution
€ 100 000,00
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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